Credit Score

[FS09]

Sorry if this is a dumb question, but we filed for chapter 7 on June 3rd, and had our 341 meeting one month ago on July 10th. I'm holding my breathe, but so far so good! My credit score has dropped, but is still an average of 677 from the 3 reports. I assume this is going to drop a bunch more before or after discharge? I've heard people say once your discharged your score is automatically 500? However, I've heard a few people say they were in the 400's or even 600's??? Please comment with your experience. FWIW - I started out in the mid 700's before I quit paying CC's and filed BK.

[NoMoreCards]

I believe the differences you are hearing about is related to the different scores going into BK. Some people have a very long period of being late, on many things, for months on end before filing. So even before they file their scores are very low. Then once they do file, it drops further.

From what I have seen and heard, the BK will drop your score a average of 120 points. So if you started out with a 720, you would end up around 600.

I am sure others on here would have more information, but this is what I believe to be true...as of right now.

[Amy26]

You can see mine from my signature... I believe mine will continue to go down because I have a couple creditors that are not reporting me as if I was in bankruptcy. They keep updating the status from 30-60 days late to 61-90 days ... thus making it look like I'm continuously becoming later and later. Also, my mortgages are still being listed as "normal' debts. Though, they also just pushed to 31-60 days late.

So, I believe your score will stay the same/go up/down based on how your existing creditors keep reporting you.

[debtmonster]

My credit score is in the high 400's. You're lucky to have such a high credit score.

[dingdong]

My score actually improved upon filing.* It was in the depths of hell before filing though, so it really had nowhere else to go but up I suppose

I have read many posts that at about 6 months post discharge, your score will take a little jump as long as things are going ok ( no new lates, etc).

Your score after BK will depend o lot on your score pre BK, if it was fairly good-not a lot of baddies pre B K, you will take a hit, but it should improve gradually with good maintainance.

My friend filed a few years ago and within two years it was back at about 700. It does seem to get stuck at a ceiling though with the BK on your reports.

The BK can keep you from obtaining new credit no matter what your score is with non BK friendly creditors. Which may be a good thing as it will probably keep most of us from getting in the same spot credit wise before BK if CC debt was your main reason for filing.

My scores are in the mid 500's now, it was below 500 before filing, I filed in November/08- so about a 60 point jump since filing.

Now I am in the "poor" category on Fico, movin' on up from the "very poor" category.

I feel so worthy!!

[Amy26]

I also noticed you said your "average" score is 677. Do you have one that is significantly lower than the rest? IE: Equifax is lower than your transunion and experian? I also have noticed (as I have credit monitoring) that most of my creditors were only reporting me to 1 bureau (Equifax). So, traditionally my credit score on transunion and experian were always much higher than my equifax score.

Since I have filed for bankruptcy, I have seen a berage of "A NEW ACCOUNT HAS BEEN ADDED TO YOUR FILE" on experian and transunion. They didn't feel the need to report me when I was in perfect standing but now that I'm in bankruptcy its.... woooooo lets report her on all of them as bankrupt!!

[FS09]

All 3, Experian, Equifax and TransUnion, were within 15 points of one another. As far as I can tell, all creditors are showing BK.

My other question is, I will quite likely be foreclosing on my home. Will that cause the score to drop more? Both already show included in BK.

[FS09]

Anyone else with experience?

[IBroke]

I've heard people say once your discharged your score is automatically 500?

That's def. INCORRECT.

It always depends on your prior history. If you had a spotless credit-file, you will be hit hard. If you had many accounts already late or in charge-off, BK could actually INCREASE your score.

You def. have to do your homework after the job to make sure everything is reported correctly.

[shabam]

You have to remember that score does not mean much post-bk, particularly ch 7. It is going to take a number of years for someone to prove they are credit worthy.

You could have a 750 credit score but the second a creditor seems the bk on your file, it will affect their decision. For example, a 630 without a bk mark is way better than a 700 post-bk.

[keepmine]

As others pointed out, a credit score is going to be immaterial for awhile. That nice shiney bk in the public records section of your credit report will preclude many creditors from doing business with you for a few years.

For me, I filed in Oct of 05. About 6 weeks shy of the 2 year mark of my filing, my wife's car died and we needed another car. I applied at a local bank where I'd had an account for 20 plus years and, a local credit union. Neither had any debts that were included in my bk. The adverse action letter just said, recent bk as the reason for the decline. I found out later that the 2 year mark post bk is when they'd consider loans. But, we went to Cap 1's blank ckeck program and were fianced at a great rate { loint loan-she never filed and has great credit} for a used car and I did include Cap 1 cc debt in my filing. Go figure!
About a year or so post filing, I applied for a Barnes and Noble branded M/C and was denied by Barclays Bank. In Feb 08, about 2 1/2 years post filing I got approved.
Plus, then was then and now is now. I think getting access to unsecured credit is gonna be tougher in the economic climate. Heck, people with got credit scores and no derogs on their reports are getting limits cut and interest rates raised.

[FS09]

The only thing I am looking to do is get a car. I will be letting a leased 2008 Acura MDX go in the chapter 7. I have another vehicle under 60 month financing through Capital 1 that I am keeping, never been late, and only have 8 payments left! I'm hoping to get a loan from them for a $10K or so vehicle for my wife. I realize that I will be "damaged goods" for many years due to the BK. That is fine. I really don't want to go into debt with credit cards, mortgage, etc anymore. I really don't want a car loan, but my wife drives 20K per year hauling my 3 kids and really needs a safe/reliable vehicle.

[RainMoM]

The only thing I am looking to do is get a car. I will be letting a leased 2008 Acura MDX go in the chapter 7. I have another vehicle under 60 month financing through Capital 1 that I am keeping, never been late, and only have 8 payments left! I'm hoping to get a loan from them for a $10K or so vehicle for my wife. I realize that I will be "damaged goods" for many years due to the BK. That is fine. I really don't want to go into debt with credit cards, mortgage, etc anymore. I really don't want a car loan, but my wife drives 20K per year hauling my 3 kids and really needs a safe/reliable vehicle.

i love that car, Acura MDX ..

[RainMoM]

I checked my hubby's score the day before we filed, and it was 497 We have never had a great score to begin with, around 630.. My question is.. What can i do to help bring up the score ? Besides paying on our two cars on time, I have nothing else to pay that can bring up my score ! what can i do ?

[Ann]

This whole talk of credit and getting credit and keeping credit is what put me where I am today! For so long I paid my credit cards BEFORE I paid my mortgage and cars. How stupid was that? Always so fearful of keeping my score high.