|
|
|
|
|
FICO® Forums >
Bouncing Back from Credit Problems >
Bankruptcy >
Deleted bankruptcy
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
lisasandiego
Visitor
Posts: 8
Registered: 03-25-2008
Message 2 of 105
Viewed 40,414 times
|
|
|
Good Question! I'd like to know this too!
04/01/2008 EQ-605 / TU-623 / EX-654
|
|
|
|
03-25-2008 12:39 PM
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
laurenjane
Contributor
Posts: 23
Registered: 12-31-2007
Message 4 of 105
Viewed 40,186 times
|
|
|
FaircreditguyFL - Won't it improve at all? If you have re-established credit after your discharge, and the 7 years ticks by and finally the BK drops off, surely your scores will improve, as you won't be showing a "serious delinquency or collection or public record." Doesn't that make sense? Or am I missing something?
|
|
|
|
03-31-2008 02:46 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
George2037
Regular Contributor
Posts: 148
Registered: 08-15-2007
Message 5 of 105
Viewed 40,150 times
|
|
|
laurenjane wrote: FaircreditguyFL - Won't it improve at all? If you have re-established credit after your discharge, and the 7 years ticks by and finally the BK drops off, surely your scores will improve, as you won't be showing a "serious delinquency or collection or public record." Doesn't that make sense? Or am I missing something?
Public records in general don't effect your score after 2 years. It would be safe to say that a BK would be in the same catagory. Basicly FICO see's a public record's closing date, it doesn't get into specifics on what it's for or how much it was for, just that is was settled/ closed on xx/xx date. The part to look forward to is once the BK falls off, the unfriendly BK lenders will be freindly to you once again.....
|
|
|
|
04-01-2008 04:55 AM
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
lisasandiego
Visitor
Posts: 8
Registered: 03-25-2008
Message 9 of 105
Viewed 40,081 times
|
|
|
That doesn't seem right... It should go up... Has anyone pulled their credit right after a BK was removed from their credit report who can verify this?
04/01/2008 EQ-605 / TU-623 / EX-654
|
|
|
|
04-01-2008 04:18 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
Creditaddict
Super Contributor
Posts: 3790
Registered: 10-23-2007
Message 10 of 105
Viewed 40,009 times
|
|
|
Poster is right, after BK comes off you go down. Right now your score is simulated based on how you perform compared to others that have filed BK. When BK drops off, you are put back into that group of people that have NEVER filed bk and never have been late and all that stuff. Most likely your file isn't going to be quite as strong as theres especially if you have not been rebuilding.
Dear Bank,
"I have created a disaster, Please leave my credit lines alone long enough for me to fix it!
|
|
|
|
04-02-2008 11:05 AM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
laurenjane
Contributor
Posts: 23
Registered: 12-31-2007
Message 11 of 105
Viewed 25,595 times
|
|
|
Hi everyone, It would seem though that any accounts you had with lates or collections "included in the BK" would fall off the same time (or most likely earlier) than the BK, so therefore, you wouldn't have any lates or public records showing (as long as you didn't have any after the BK filing as you were rebuilding credit). So technically, your score shouldn't go down -- if you were then put on a level playing field with others with no BKs or public records or lates, right? This is assuming during the time between discharge and the BK dropping off you've re-established credit, increasing credit limits over time, keeping balances at a reasonable utilization, maybe taken out a car loan or mortgage, etc. My Ch. 13 BK was just discharged 2/08 (filed 10/04), but during the BK, I re-established credit with a student loan, two unsecured loans with Prosper (installment), a Dell account and an unsecured Household Bank account (revolving) that is now up to $1000 limit (started at $300). My car is paid off, so no auto loan yet, and I am looking at a mortgage hopefully in about 6 months. I also have a credit union LOC for $1000 and an Orchard Bank visa ($750 limit). I am hoping to increase the LOC and credit cards within 6 mos (hoping to have mid score over 700). I have no lates. All negative info is from BK or accounts included in BK. I guess my question is that once my BK falls off in 10/2011 (another long 3+ years :smileysad  , if I've "kept my nose clean" from now until then, how can my score go down? I appreciate any thoughts... EXP 623 3/25/08 EQFX 616 3/25/08 TU 564 3/25/08
|
|
|
|
04-03-2008 11:53 AM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
kimmerzz
Contributor
Posts: 30
Registered: 06-04-2007
Message 12 of 105
Viewed 25,585 times
|
|
laurenjane wrote: Hi everyone, It would seem though that any accounts you had with lates or collections "included in the BK" would fall off the same time (or most likely earlier) than the BK, so therefore, you wouldn't have any lates or public records showing (as long as you didn't have any after the BK filing as you were rebuilding credit). So technically, your score shouldn't go down -- if you were then put on a level playing field with others with no BKs or public records or lates, right? This is assuming during the time between discharge and the BK dropping off you've re-established credit, increasing credit limits over time, keeping balances at a reasonable utilization, maybe taken out a car loan or mortgage, etc. My Ch. 13 BK was just discharged 2/08 (filed 10/04), but during the BK, I re-established credit with a student loan, two unsecured loans with Prosper (installment), a Dell account and an unsecured Household Bank account (revolving) that is now up to $1000 limit (started at $300). My car is paid off, so no auto loan yet, and I am looking at a mortgage hopefully in about 6 months. I also have a credit union LOC for $1000 and an Orchard Bank visa ($750 limit). I am hoping to increase the LOC and credit cards within 6 mos (hoping to have mid score over 700). I have no lates. All negative info is from BK or accounts included in BK. I guess my question is that once my BK falls off in 10/2011 (another long 3+ years :smileysad , if I've "kept my nose clean" from now until then, how can my score go down? I appreciate any thoughts... EXP 623 3/25/08 EQFX 616 3/25/08 TU 564 3/25/08
Exactly what I did ... CH-13 filed 2000... discharged 2003. When BK and all derogs included with it fell off last Sept my score went up 80 points to 777. It now stands 6 months later at 800 on EQ, 793 EX, and 787 TU. I didn't need but a couple CC's, my mortgage, my HELOC, and a very brief car loan to accomplish this. And of course paying on time all the time between then and now. I also only applied for credit that I actually needed and used. I'm a firm believer in the KISS method.  |
|
|
|
04-03-2008 12:36 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
Boscoe
Super Contributor
Posts: 660
Registered: 09-11-2007
Message 13 of 105
Viewed 25,564 times
|
|
|
kimmerzz - How old is your oldest tradeline and about what is your avg. age? Those scores are great and I am wondering how old your credit is...............
|
|
|
|
04-03-2008 04:51 PM
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
kimmerzz
Contributor
Posts: 30
Registered: 06-04-2007
Message 15 of 105
Viewed 25,554 times
|
|
Boscoe wrote: kimmerzz - How old is your oldest tradeline and about what is your avg. age? Those scores are great and I am wondering how old your credit is...............
I got lucky with my oldest TL... it's a line of credit attached to my checking account that I opened 17 yrs ago and still going strong, which they faithfully report every month. CU's are great! My average age of accounts is 7yrs. I had 1 CC from 93 that remained after filing which started out at 3500 and is now over 10k. I accepted an offer from Cap1 for a 7500 CC in 03 (after reading about them here I can't believe it was for that amount) Bought a car in 04 and paid it off 6 months later. In 05 I did a cashout refinance at 5.25%. In 06 I opened a HELOC. After everything did drop off, I did accept a pre approved from Chase and received a 14k CC. I don't need a lotta cards... too much hassle. Basically I did just fine with those 2 cards I had for those 7 years. But it was nice when all that trash dropped off! |
|
|
|
04-03-2008 05:55 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
laurenjane
Contributor
Posts: 23
Registered: 12-31-2007
Message 16 of 105
Viewed 25,448 times
|
|
|
Thanks Boscoe, I wasn't really counting on anyone removing them prior to the 10 year mark -- although my Ch. 13 should be 7 years from the filing date, isn't that correct? So it should fall off about 10/2011? That's kinda frustrating if EQ leaves it on there another 3 years....
|
|
|
|
04-07-2008 02:05 PM
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
laurenjane
Contributor
Posts: 23
Registered: 12-31-2007
Message 21 of 105
Viewed 22,787 times
|
|
|
FaircreditguyFL, How do you explain Kimmerz experience? Scores went up. It can't be a hard and fast "scores will go down for sure" edict. I think it all depends upon what you've accomplished within the time between filing and the BK falling off. It just makes sense.
|
|
|
|
04-08-2008 10:03 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
laurenjane
Contributor
Posts: 23
Registered: 12-31-2007
Message 22 of 105
Viewed 22,789 times
|
|
|
Valleyfever, I'd love it if you'd share your experience once the BK falls off, and you've checked your scores. Keep us posted!
|
|
|
|
04-08-2008 10:04 PM
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
[ Edited ]
|
|
Guardian
Super Contributor
Posts: 1117
Registered: 04-23-2008
Message 26 of 105
Viewed 22,504 times
|
|
I am new to posting in the forums so I don't want to step on any toes but the sentiment of "people in the back row" is very condescending and helps no one. The fact is that there is no hard set rule about if it goes up or down. The fact is that the length of your oldest credit notation makes a difference and how many accounts you have in good standing and what your debt ratio is.
So for someone like myself, when I got my bankruptcy off my credit report (in 4 years) my score went from 662 to 725 but that is not to say that it will do that for everyone. I also have a 17+ year history on my report and I have no other negative items against me. The only reason it didn't go higher was that I have student loans in deferment that mess with my ratio. But 725 is nothing to sneeze at and I will take that for now over being turned down simply because my bankruptcy would show up. Even if it doesn't count against you in the score after 2 years, companies are likely to consider it just the same.
Try a few simple things to your best ability and you should be fine. 1) try as quickly as possible to rebuild your credit, 2) do not close good standing accounts, especially the longer you have had them the more they will help you, 3) don't make the mistake of using cash only as no activity will hurt you more, 4) try to get as many of the negative notations off your report as soon as possible, 5) don't use consolidation services and if you use services to remove your negative stuff be careful as they are not all the same, with a little patience you can do it yourself, 6) don't request too many credits in a short time, they will hurt you bad, especially if you are declined and even if you are not, finally) pay down as much as you can as fast as you can and keep your balances low, it takes more than 30 days for them to report your lower balance to the credit agencies and this means you ratio will continue to show high.
good luck everyone.
Message Edited by Guardian on 04-23-2008 03:03 PM
Message Edited by Guardian on 04-23-2008 03:08 PM
Common Abbreviations|FDCPA|FCRAJanuary 4th, 2009 ( TU:672 - EQ:719 - EX:630 ) ...
September 9th, 2008 (TU:695 - EQ:755 - EX:712)
Hope for the best, prepare for the worst; if at first it fails, try try again.
|
|
|
|
04-23-2008 03:02 PM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
EricRemy
Visitor
Posts: 4
Registered: 02-29-2008
Message 36 of 105
Viewed 21,868 times
|
|
|
In spite of what others may tell you online, your score does not automatically go down once your bankruptcy drops off. That isnt to say that it can't happen. But it can, in fact, go up. It really depends on how you have treated credit since your bankruptcy. Although it is true that when the bankruptcy was on your record, you were being compared to others that had a bankruptcy, and now you are being compared with those who don't, (its called a scorecard) if you have rebuilt correctly and managed yourself well, once you are moved to a non-bankruptcy scorecard, you may still fair well against the non-bankruptcy crowd. While I was waiting for my bankruptcy to drop off, I read several books on credit use. I followed the advice for several years, and when my bankruptcy dropped off, my score actually jumped from 706 to 786. <Thats 80 points> So anyone that tells you that it only goes down are simply incorrect.
|
|
|
|
04-23-2008 07:36 PM
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
BKfreeatlast
Visitor
Posts: 4
Registered: 04-03-2008
Message 38 of 105
Viewed 21,844 times
|
|
|
Eric That is identical to my story... I managed my credit extremely well for the last 10 years & my score increased exactly 80 points the day my BK was dropped.
|
|
|
|
04-23-2008 08:03 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
EricRemy
Visitor
Posts: 4
Registered: 02-29-2008
Message 39 of 105
Viewed 21,831 times
|
|
|
Thats awesome!! What freedom that is when you see that boost!! I now continuously get credit offers wherever I go.... A tip for those of you who have ever been turned down for credit in the past, yet are now being courted to take on credit.... a nicely worded rejection letter to them might assist in your amusement... "Thank you for applying with Eric.... However, at this time, I am sorry to say that I will not be accepting your offer. If you would like a list of reasons, please send a written request with your signature to the following address...." Big fun, I promise.
|
|
|
|
04-23-2008 08:13 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
BKfreeatlast
Visitor
Posts: 4
Registered: 04-03-2008
Message 40 of 105
Viewed 21,801 times
|
|
|
I agree! 10 years was a long time, but now I "toy" with the credit offers that I receive and it is amazing to realize that these BIG credit companies will bow down to my requests  Best of luck in your credit future!
|
|
|
|
04-23-2008 08:39 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
LaurelC43
New Visitor
Posts: 1
Registered: 04-23-2008
Message 41 of 105
Viewed 21,559 times
|
|
|
I keep seeing the words "credit score" in this forum when what I think you mean is your FICO score (VERY different). Each credit reporting agency "scores" differently. FICO uses all three credit reporting agencies' data and scores range from 300 to 850. I strongly recommend you read this: Also, someone in this forum said that paying cash is the worst thing you can do! I have lived on a cash basis for 7 years now and find it INCREDIBLY liberating. Each time one of my collection accounts dropped off my credit report, my score went up. I haven't used credit at ALL and I'm now considering buying a house at the beginning of next year when everything negative is off my credit report and I've saved a little more money. Over the last year, I have applied for and received a gas card, a furniture store card, and two department store cards. (My credit history is 33 years.) I will apply for a major credit card as soon as I find one that doesn't charge an arm and a leg just for HAVING it. I have no intention of charging anything on any of these cards unless I already have the money to pay it off (just a stupid exercise to decrease my debt-to-credit ratio and increase my available credit, which in turn, increases your FICO score!) If you can possibly do it, I HIGHLY recommend going 'cardless'. I realize that many people are in dire straights right now and NEED the help their credit cards can give them, but if at all possible, DON'T get caught up in it! I kinda took a Mary Poppins approach to spending and decided to make a game out of not spending. I LOOK for ways NOT to spend money. You'd be surprised how much you can do without and NOT change your lifestyle! Save your credit for a BIG purchase (like a house) and use cash whenever possible. Learn the difference between a NEED and a WANT (I do not NEED a new address book. I WANT a new address book.) What I need is DRAMATICALLY different than what I want! Remember that your possessions do not define who you are. It's what's INSIDE that counts. You can't buy that with or without a credit card! Cheers, Laurel
|
|
|
|
04-23-2008 10:30 PM
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
ike
Regular Visitor
Posts: 4
Registered: 09-08-2007
Message 44 of 105
Viewed 21,488 times
|
|
|
I'm just joining. There has been some interesting commments made about whether BK comes off in 7 or 10 yrs. The FCRA (fair credit reporting act) sets the time period negative information can remain on your credit report. The law allows a bankruptcy filing or an unpaid IRS tax lien to remain on your crdit report for 10 yrs. A Chapter 13 can stay for only 7 yrs. Other negative info becomes obsolete after 7 yrs and must, at request, be removed. I got my info from th book "Great credit ...Guaranteed! Improve you credit in only 90 days...or your money back!" 2007 by Arny Gold. Please get this book it will help tremendously!!!!
On the road to recovery!!!
|
|
|
|
04-24-2008 06:21 AM
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
EricRemy
Visitor
Posts: 4
Registered: 02-29-2008
Message 46 of 105
Viewed 21,341 times
|
|
|
Please forgive me if I mis-typed. Yes, I am aware that a FICO score is difference than a credit score. So to re-state what happened to me after my bankruptcy dropped off my record, my FICO score jumped 80 points. Yes, my FICO score. My point still stands.... Bankruptcies dropping off can raise your FICO score. (And most likely WILL)
|
|
|
|
04-24-2008 03:50 PM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
TheNewWorldMan
Super Contributor
Posts: 2484
Registered: 03-15-2007
Message 52 of 105
Viewed 19,151 times
|
|
A key to improving your credit after any negative event is to make sure you have good, open accounts (with low balances if they are revolving accounts).
Remember, your credit score is a balance between the good and bad. Sometimes you can't do anything about the bad, but you can counteract and dilute it with good credit.
- - - - - - - - - -
|
|
|
|
07-01-2008 12:37 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
Onielynn
Visitor
Posts: 1
Registered: 04-19-2007
Message 53 of 105
Viewed 18,966 times
|
|
|
Hi, I'm very new to the forum but three of my family members filed bankruptcy. All have recovered nicely and the their credit scores went sky high. They have been extremely careful about rebuilding their credit after bankruptcy. I have too many years to go but I've been rebuilding and even have a Chase card limit 5000 and the interest rate is low.
|
|
|
|
07-01-2008 04:27 PM
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
TangMeister
Valued Contributor
Posts: 286
Registered: 07-09-2008
Message 55 of 105
Viewed 16,191 times
|
|
There seem to be quite a few generalizations in this thread, concerning what happens after a BK drops off your CRs. Some say "scores go up!" and some say "scores go down!" post BK drop-off. The thing is...it simply depends on how you've managed your credit before and since the BK, with regard to accounts that will remain on the credit report after the BK and related IIBs drop off.
If you've had sterling credit aside from the BK, and rebuilt properly and quickly post-BK, your score will most likely go up...simply because you'll compare favorably to other's when you're rebucketed out of the BK grouping.
If you have some CR negative factors showing....late pmts, repos, collections, settlements, charge offs, liens, judgments, high revolving debt, etc...since your BK, then your score may very well go down when your BK drops off and you're rebucketed into a non-BK comparison group. They may have better CRs than you, so you're going to be penalized for it. Heck, it may even stay about the same for either case, depending on your credit history and reports.
It is VERY MUCH a YMMV situation...and aside from the above scenarios, perhaps we can avoid generalizations and hopefully stop confusing the less-informed readers out there.
If you've done your best and your CR reflects that accurately, then you'll score as well as you can...up or down, regardless of the BK, eh? Good luck!
|
|
|
|
07-30-2008 02:21 AM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
robertkinder
Regular Contributor
Posts: 161
Registered: 07-12-2008
Message 56 of 105
Viewed 15,781 times
|
|
|
Score will go up, no it will not, yes it will. As you can see everyone is saying something different because quite frankly everyone will have a different experience when they loose their BK. The best thing to do is just keep your nose as clean as possible after a BK and you will not have a worry.
4-1-08 / EQ 428 - TU 440 - EX 460
8-1-08 / EQ 565 - TU 541 - EX 552
|
|
|
|
08-04-2008 05:33 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
mjbfan79
Super Contributor
Posts: 1525
Registered: 03-31-2008
Message 57 of 105
Viewed 15,757 times
|
|
robertkinder wrote: Score will go up, no it will not, yes it will. As you can see everyone is saying something different because quite frankly everyone will have a different experience when they loose their BK. The best thing to do is just keep your nose as clean as possible after a BK and you will not have a worry.
I agree everyone story is different it depends on allot of things. |
|
|
|
08-04-2008 07:05 PM
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
mjbfan79
Super Contributor
Posts: 1525
Registered: 03-31-2008
Message 59 of 105
Viewed 14,934 times
|
|
dgrimm wrote: How did you delete the bankruptcy from your report? I have a 7 year ole Chapter 7 I would like to get rid of. Thanks!
Chapter 7's will stay on your report 10 years from the file date so you have 3 more years to go then it will be removed. |
|
|
|
08-16-2008 08:55 AM
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
dreamer09
New Visitor
Posts: 1
Registered: 01-01-2009
Message 64 of 105
Viewed 6,770 times
|
|
|
I am new to this forum and new to the BK game as I just got my discharge on Dec. 17, 2008. However, I would like to know did you have the student loans prior to your filing or did you get them once your BK was discharged. I filed a CH7 and included everything I could except my leased vehicle, a line of credit I have with my credit union, my Walmart card which did not have a balance, a property I purchased for $1.00 that needs a little rehab, and 2 student loans that I already had when I filed. I figure if I continue to pay my lease on time, along with my student loans, this should re-establish my credit to a fair/good standing in a moderate amount of time. Do you agree and/or do you have any advise for me. Oh, I also opened up another bank account just in case my CU were to close my account of which they did not; thank God. I have 2 Visa Debit cards with each CU/Bank account.
|
|
|
|
01-01-2009 11:43 AM
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
[ Edited ]
|
|
 fused
Moderator
Posts: 13940
Registered: 03-12-2007
Message 68 of 105
Viewed 5,891 times
|
|
LYNNY47 wrote:
My bankrupcy was taken off my credit report from Trans Union and Experian about 2 years ago so that would be the end of 2006. It had been listed on my credit report since 2001 so that would be 5 years it was listed in these 2 bureaus. Equifax however has not deleted it and I am not expecting them to do it until around 2011. As I said before I filed chapter 13 and it was dismissed by the trustee so therefore you have to keep it for 10 years instead of 7 years and that is what happened to me. If you want to send me a private message I will be glad to share with you about your question that you asked.
Why don't you share it with all of us? Message Edited by fused on 01-14-2009 10:16 AM
--------------------------------
Whats In Your FICO Score
Improve Your FICO Scores
Closing Credit Cards
Please Remember To Be Friendly, Supportive And Respectful When Posting In The Forums!
|
|
|
|
01-14-2009 12:11 PM
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
[ Edited ]
|
|
ScoreBooster
Regular Contributor
Posts: 156
Registered: 05-30-2008
Message 71 of 105
Viewed 5,881 times
|
|
teddy67 wrote:
My bankruptcy was in 2001. Last year each of the creditors began dropping off of my report, and each time one did, my FICO score dropped and kept getting lower each time another one of my creditors dropped off. I was shocked and devestated because of this. I have 2 credit cards that I have been using for the last 4 years and have always paid the entire balance every month, never once was I late. Watching my score go up every couple of months and then drop drastically again the next month finally made me call MyFico. I was told that each time one of the creditors from my bankruptcy had dropped off of my credit report, it caused a big decrease in my fico score, and that it would continue to do so until all of the creditors dropped off my report. She was entirely correct, because when they all finally dropped off of my credit report, my fico score went up a whopping 100 points and is presently 744. I still have a couple of years to go, before my credit report is totally clear of any mention of a bankruptcy.
Would one of our experts on this forum (i.e. fused) please try to explain to me why the FICO DEcreases if negative accounts fall off the report while you have a BK on file? So somebody who has 30 charge-offs on file after his CH7 has a higher score than somebody with only one? It doesn't make sense to me... I do understand that your score increases dramatically once all derogatory accounts fall off - but the prior dropp is totally weird. I always thought once you have a BK on file, your score is calculated in comparison to others who have a BK as well. Now why is somebody with a higher number of derog. accounts on file "more credit-worthy"?? Thanks in advance! Message Edited by ScoreBooster on 01-15-2009 09:28 PM
|
|
|
|
01-15-2009 09:22 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
llecs
Moderator
Posts: 14082
Registered: 08-04-2007
Message 72 of 105
Viewed 5,864 times
|
|
ScoreBooster wrote:
Would one of our experts on this forum (i.e. fused) please try to explain to me why the FICO DEcreases if negative accounts fall off the report while you have a BK on file? So somebody who has 30 charge-offs on file after his CH7 has a higher score than somebody with only one? It doesn't make sense to me...
I'm no expert, but removing an old CO can drop your scores. I've have paid and unpaid COs fall off resulting in a lower score. Why? Because when those old TLs fall off, you are losing badly needed history. When you lose that history, your AAoA drops and sometimes that weighted more, score-wise, than the baddie itself. Now CAs need to come off, but when asking old OC COs to disappear, via a GW or whatever, you always need to consider the AAoA. If the account is older than your AAoA, then don't touch it. However, it's OK to take the risk from time to time to ask them to remove a remark, late, etc. If the CO is younger than your AAoA, then GW them to ask for removal; it will only help your score. Another factor to be considered is the length of positive history in that TL (if reporting monthly) in relation to the bad. If removing an old CO, you may be removing more good than bad.
|
|
|
|
01-16-2009 05:54 AM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
ScoreBooster
Regular Contributor
Posts: 156
Registered: 05-30-2008
Message 73 of 105
Viewed 5,833 times
|
|
llecs wrote:
ScoreBooster wrote:
Would one of our experts on this forum (i.e. fused) please try to explain to me why the FICO DEcreases if negative accounts fall off the report while you have a BK on file? So somebody who has 30 charge-offs on file after his CH7 has a higher score than somebody with only one? It doesn't make sense to me...
I'm no expert, but removing an old CO can drop your scores. I've have paid and unpaid COs fall off resulting in a lower score. Why? Because when those old TLs fall off, you are losing badly needed history. When you lose that history, your AAoA drops and sometimes that weighted more, score-wise, than the baddie itself. Now CAs need to come off, but when asking old OC COs to disappear, via a GW or whatever, you always need to consider the AAoA. If the account is older than your AAoA, then don't touch it. However, it's OK to take the risk from time to time to ask them to remove a remark, late, etc. If the CO is younger than your AAoA, then GW them to ask for removal; it will only help your score. Another factor to be considered is the length of positive history in that TL (if reporting monthly) in relation to the bad. If removing an old CO, you may be removing more good than bad.
Thanks (Kudos!) for that reply - that makes sense. I was just confused if this rule applies in general. So I guess if accounts dropp off that were relatively young (i.e. 6 months) charge-offs, your score goes up - anf if you included an old account in your BK before it was even reporting 30 days late, your score goes down when they fall off. I agree, it makes sense. I was just thinking of my situation with my bunch of "young" charge-off accounts. I just couldn't think of any reason why my score should go down once they are gone...
|
|
|
|
01-16-2009 06:17 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
mountainskies
New Visitor
Posts: 2
Registered: 01-20-2009
Message 74 of 105
Viewed 5,693 times
|
|
|
I filed chapter 7 w/ spouse Oct 2003. Working to clean up my credit. Got a house mortgage (my name only) Oct 2005. Divorced Oct 2007 Took out overdraft protection Line of credit Took out Car loan 4/08 and HELOC Oct 2008 (to pay off ex husband) Current FICO is in the high 600s and low 700s. No late payments Credit to debt ratio is at 82% (because of HELOC) Want to refi and pay a chunk on mortgage principal in 2 years after the BK falls off and I get the HELOC and car loan at least cut in half. So my question is do I still need more revolving credit stuff? or is the HELOC and overdraft protection enough to help come 2 yrs from now. Thanks
|
|
|
|
01-20-2009 02:23 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
txjohn
Super Contributor
Posts: 3197
Registered: 09-12-2008
Message 75 of 105
Viewed 5,447 times
|
|
|
I have found there are two schools of thought: FICO and Reality. While FICO is used by credit grantors as a tool, so is the actual contents of your credit report. And FICO is not a guarantee of credit. For example, my brother has a median FICO of 740. He filed BK in 2000, so that won't drop for another 2 years. However, he reaffirmed a couple accounts keeping his length of history above 12 years, and he has established new credit and kept his credit clean and ratios under 20%. However, even though his score is 740, with great history for the past 6 years, Bank of America declined him for a $25k auto loan simply because he has a BK on his credit. Of interest to know, this is where he banks, has substantial cash and investments and has business banking. But they would not reconsider. Capital One granted the loan with 7% interest and did instant approval. Bottom line: You can have a great fico but still be declined because credit decisions are made on more than just FICO. Some companies have credit policies that say, "regardless of FICO score, certain items in credit profile are deal breakers."
|
|
|
|
01-28-2009 06:56 AM
|
|
|
|
|
Re: Deleted bankruptcy
[ Edited ]
|
|
nfig
New Visitor
Posts: 1
Registered: 02-05-2009
Message 76 of 105
Viewed 5,221 times
|
|
|
Before ch. 7, too many revolving accounts, BUT I kept paying them on time until about 90 days before filing. I kept 2 credit cards with with low balances and continued to use them after the discharge. I had a student loan and a gym "loan" at Bally's. One year after the discharge my FICO was 593 xpn, 653 tu, and 643 efx. 5 years on xpn 712, 707 tu, and 692 Beacon. Bought a house and car two years later. 3 months after the BK was "purged" it was xpn 771, 758 tu, and 751 Beacon. SO, my scores went UP, like I expected. Then again, compared to the typical BK pool, I had been rebuilding my rating for 10 years without a slip up, just waiting for the bad stuff to drop off. I suspect by next year, my average should be another 10-20 points higher. Even so, I'm quite happy with those scores. Message Edited by nfig on 02-05-2009 06:26 PM
|
|
|
|
02-05-2009 06:25 PM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
myfico5378
Regular Contributor
Posts: 56
Registered: 08-22-2007
Message 77 of 105
Viewed 5,116 times
|
|
|
I've just reached a whole new frustration level with this scoring game, so I found my way back to the forums to see where I'd gone wrong. Apparently, getting rid of IIB accounts wasn't a good idea... They were due to fall off in the next month or two so I disputed as too old on TU only to see what would happen. TU deleted all of my IIB accounts. YEAH... or so I thought. So, I logged in to FICO to see how my score changed (my most recent score was just 10 days prior) and it DROPPED 15 POINTS! I went from 655 to 640. I know my revolving credit is too high (56%), but it will be under 30% this Friday, so I'm anxious to see how that will affect it. My AAofA did drop from 5+ to 4, but my oldest tradeline is 19+ years (it's an AU). I've had numerous (5 or 6?) car loans since I filed BK, a couple of boat loans, a few personal loans, and 8 or 9 credit cards. All have been paid on time. The only negative left on my account is the BK itself. DH and I are planning to get a new mortgage in the next 6 months (if we sell his house and my rent house). My revolving credit will be less than 10% before we apply. Do you think my scores will be up by then? BTW, my DH has several charge-offs and 2 collections on his reports. I've cleaned up what I can, but there are still a few showing. His EQ is 686. How does that happen???!
|
|
|
|
02-09-2009 11:28 AM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
CDB_99
Contributor
Posts: 41
Registered: 02-07-2009
Message 78 of 105
Viewed 5,029 times
|
|
|
I didn't get a chance to read all the way through this thread, but saw there was some contention as to whether your score would go up or down when a BK gets gone. I'm sure it's not the same for everyone, but here's my results. BK7 was already off EQ and EX when I pulled on 2/4, but TU still showed it. Today, it's gone!! Yay me!!!!! TU 2/4/09 658 TU 2/11/09 677 I've already been through line by line, no public records is the ONLY difference! Now, gotta work on those baddies!!
|
|
|
|
02-11-2009 05:40 PM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy
|
|
beamMEup
Super Contributor
Posts: 668
Registered: 12-31-2008
Message 88 of 105
Viewed 3,448 times
|
|
|
jmaxwell, try Orchard - they have far better terms than Premier One, and are BK friendly, which Cap One is not.
_____________________________________________________________
fave quotes: TNWM: "Never use cc's to revolve a balance to spend money you don't have."
anythingispossible09: "While having a high FICO score is great, being debt-free is even better. My advice is to try and get out of credit card debt completely. I use my cards to keep them active but I PIF every month."
|
|
|
|
04-21-2009 07:43 AM
|
|
|
|
|
Re: Deleted bankruptcy
|
|
LindaLu
Regular Contributor
Posts: 142
Registered: 06-13-2008
Message 89 of 105
Viewed 3,342 times
|
|
|
I think the original question was meant for when the bk becomes 7 or 10 years old and is no long showing on the credit report. I would think the score would go up too.. How do they group or "compare" you to other people? shouldn't it be based on your own merit? I do have one question on this subject though ..when you mentioned the closing date is that the discharge date or the filing date..because once you file the creditor should no longer be reporting good or bad on your payments being made on time or late...I will reach 2 year filing mark 5/2 (next week!) but my discharge is august 21 ..so does that mean my score will still reflect the public record until August??? I have gotten mixed answers on this..some say may is the 2 year mark and some say August...thanks for any help. I like your motto credit addict!!! it is so me!!
|
|
|
|
04-24-2009 05:08 PM
|
|
|
|
|
|
|
Re: Deleted bankruptcy effect on Fico score
|
|
virgoman
Visitor
Posts: 8
Registered: 04-03-2007
Message 91 of 105
Viewed 1,712 times
|
|
|
My Score with TU dropped 20 points 683 as BK was just removed 3 months early. EX 693 BK will come off 9-2009 EQ 678 BK will come off 9-2009 I do not get this, I have no Lates of any kind on their now with 22% credit useage. When does the scoire begin to go back up?? This stinks!!
|
|
|
|
06-23-2009 08:29 AM
|
|
|
|
|
Re: Deleted bankruptcy effect on Fico score
|
|
llecs
Moderator
Posts: 14082
Registered: 08-04-2007
Message 92 of 105
Viewed 1,691 times
|
|
virgoman wrote:
My Score with TU dropped 20 points 683 as BK was just removed 3 months early. EX 693 BK will come off 9-2009 EQ 678 BK will come off 9-2009 I do not get this, I have no Lates of any kind on their now with 22% credit useage. When does the scoire begin to go back up?? This stinks!!
Do have any other baddies like CAs or charge-offs (paid or unpaid)? If not, then you likely were rebucketed. Temporarily it stinks. Long term...you'll see some decent increases over the next few months.
|
|
|
|
06-23-2009 06:48 PM
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy effect on Fico score
|
|
beamMEup
Super Contributor
Posts: 668
Registered: 12-31-2008
Message 97 of 105
Viewed 1,625 times
|
|
|
Virgoman - what info do you get from the myfico simulator? When your 22% usage goes down, how many points do you gain? Or after 6 mo. paying your bills on time? The simulator will help you know when and by how much your scores will go back up. No lates? No IIB? Any IIB will keep you in the derogatory bucket even if there were no late payments. What is your AAofA? When DH BK dropped off - he had no lates, no IIB. Score popped up 80 points.
_____________________________________________________________
fave quotes: TNWM: "Never use cc's to revolve a balance to spend money you don't have."
anythingispossible09: "While having a high FICO score is great, being debt-free is even better. My advice is to try and get out of credit card debt completely. I use my cards to keep them active but I PIF every month."
|
|
|
|
06-25-2009 07:40 AM
|
|
|
|
|
|
|
Re: Deleted bankruptcy effect on Fico score
|
|
beamMEup
Super Contributor
Posts: 668
Registered: 12-31-2008
Message 99 of 105
Viewed 1,602 times
|
|
|
AAofA is average age of accounts - you will see it listed on your myfico (or any CRA) report IIB is Included in Bankruptcy - noted on the individual accounts in your myfico (or any CRA) report. This includes any note on the account that indicates it was IIB or a Wage Earner Plan. When a BK is dropped, the individual accounts may still hold a note that they were IIB. For a list of abbreviations see http://ficoforums.myfico.com/fico/board/message?board.id=Welcome&thread.id=23
_____________________________________________________________
fave quotes: TNWM: "Never use cc's to revolve a balance to spend money you don't have."
anythingispossible09: "While having a high FICO score is great, being debt-free is even better. My advice is to try and get out of credit card debt completely. I use my cards to keep them active but I PIF every month."
|
|
|
|
06-25-2009 06:20 PM
|
|
|
|
|
|
|
|
|
|
|
Re: Deleted bankruptcy effect on Fico score
|
|
virgoman
Visitor
Posts: 8
Registered: 04-03-2007
Message 103 of 105
Viewed 1,485 times
|
|
|
I have an average age of 20 something years I think have to look at again.. no IIB of any kind.. all those dissapeared after 7 years.. I have a clean record and pay my bills ontime and have no lates. The only thing is most usage is on 4 cards.. and 2 of the 4 them are at 80% usage and above but overall it's 22% thank you to all of you folks out there for your replies. I consider myself a pretty knowledgeable about CR as I have worked very hard to get it where it is.
|
|
|
|
06-29-2009 03:53 PM
|
|
|
|
|
Re: Deleted bankruptcy effect on Fico score
|
|
beamMEup
Super Contributor
Posts: 668
Registered: 12-31-2008
Message 104 of 105
Viewed 1,479 times
|
|
|
Virgoman - that may explain it. We've seen significant point drops when one card goes up - even if overall usage is low. Congratulations on all your good work! I've got to once again recommend the myfico score simulator which comes with your myfico score. It's only $10-15 and, even when you've already learned a lot, it's amazing to see the significant score changes when cc balances are brought down. It will put a smile on your face and provides concrete goals and - tadabing - you can visualize the score rewards. Keeps you happy while you're working your way through it!
_____________________________________________________________
fave quotes: TNWM: "Never use cc's to revolve a balance to spend money you don't have."
anythingispossible09: "While having a high FICO score is great, being debt-free is even better. My advice is to try and get out of credit card debt completely. I use my cards to keep them active but I PIF every month."
|
|
|
|
06-29-2009 06:15 PM
|
|
|
|
|
|
|
|
|
