02-22-2009 11:07 PM - edited 02-22-2009 11:09 PM
My chapter 7 bankruptcy was discharged in May 2007 (I filed in January 2007) so I'm coming up on 2 years and want to buy a house using the FHA program. I've seen on this board that after 2 years public records are not taken into the credit score so my bankruptcy will still show on my report but it won't influence the score and I will be put back into the general pool (rebucketed) for comparison against those who have never filed for bankruptcy and credit scoring. So if this happens, I have 6-8 accts that were IIB and they are still on my credit report. Will they continue to negatively influence my score so will it go down? I have only opened up 1 new TL since, a credit card which has been paid on time over the last 1.5 years.
My scores are: TU-582, EQ-658, EX-671
02-23-2009 10:22 AM
Public Records do indeed affect your score longer than 2 years post BK. My question would be more regarding the score increase we bk files would see once we hit that 2 year mark.
I have seen a steady rise in my scores since filing in July 2007, and once we get to July 2009 I am hoping to see 700's across the board.
Does anyone have any experience with the kind of scoring bump we may receive 2 years post-BK filing date, assuming a perfect payment record since then?
02-23-2009 11:58 AM
I've seen on this board that after 2 years public records are not taken into the credit score so my bankruptcy will still show on my report but it won't influence the score and I will be put back into the general pool (rebucketed) for comparison against those who have never filed for bankruptcy and credit scoring.
No, you won't be "rebucketed" until the BK falls off completely. Your score, however, will probably go up because deragotory remarks and accounts older than 2 years will have a smaller impact than before - that's correct. So if you rebuilt your credit after discharge and made all payments on time, your credit score should increase.
The initial 2 years are the "worst" after a BK - partially due to what I mentioned. Congrats, you're over it now!
02-23-2009 06:23 PM
I don't think you will see a "magical" increase in your score once you hit the 2 year hump. I am soon to hit it and my score has climbed over the two years by paying credit cards responsibly. My credit score dramatically increased when my Ch 7 BK was officially dischared, but it has not dramatically increased since then! I've done everything as I should be doing it (3 trade lines/CCs paid on time every month with very low balances). Best advice, keep that up and you're good.
The two year wait is very important for lenders, particularly FHA. If your score is 620 or higher you WILL easily qualify for an FHA mortgage loan, and that is exactly what I will be doing this June
02-25-2009 06:10 AM
02-25-2009 06:16 AM
03-01-2009 11:48 AM
I have a question about when it is "considered" 2 years since your bk7..is it when you file or when you are discharged? I too filed in 2007..I filed in may , went to bankruptcy court in june and was discharged in aug 07..I just assumed a bk on your credit report didn't look any better until it falls off in 10 years. I did however think that lenders considered how long ago you filed but didn't think when it hit 2 year mark your score went up..If it does go up can anyone tell me approximately how much of an increase it might be? that is good news it if is so..I don't have any late payments since I filed and I am at 600 with transunion currently...I had unfortuantely alot of account included in my bk so hope that doesn't hold my score down even worse. any answers to these questions are appreciated!
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