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Credit score increase after chapter 7 removed....No. Why?

New Visitor

Credit score increase after chapter 7 removed....No. Why?

I had a chapter 7 removed today and my score only increased 8 points....thats it???? You would think 50 points!!!!
Message 1 of 6
5 REPLIES
Moderator Emeritus

Re: Credit score increase after chapter 7 removed....No. Why?

Is this a credit score through this website?

 

 

Message 2 of 6
New Visitor

Re: Credit score increase after chapter 7 removed....No. Why?

Yes..thru this website.  I had the equifax score last month which was 541.  When I checked it yesterday, it was 549 when it was removed.  Must just take time to increase I guess.  I knew people who had theirs jump almost 50 points overnight!!!
Message 3 of 6
Moderator Emeritus

Re: Credit score increase after chapter 7 removed....No. Why?

I do know the damage lessens over time. Also, if you have other baddies, because they are newer, the score impact due to the BK removal is much less.
Message 4 of 6
Frequent Contributor

Re: Credit score increase after chapter 7 removed....No. Why?


squarebush wrote:
I had a chapter 7 removed today and my score only increased 8 points....thats it???? You would think 50 points!!!!

 

On the one hand, the BK-notation is gone. On the other hand, you are now back in the "clean" league, meaning your credit is compared to the those again who do not have a BK on file.

 

Now, how "active" have you been in using credit over the past 7 years? I always point out that it's wise to build new credit on day one after your discharge. That avoids a "hole" in your credit-history and gets you prepared for the day your BK falls of your report.

Message 5 of 6
New Visitor

Re: Credit score increase after chapter 7 removed....No. Why?

According to most credit counselors that I've spoken to, a BK will demolish your credit score when it hits.  As the BK ages, it effects your credit score less.  There is no solid numbers, but the first 2 years are hit by far the hardest, 200-350 points.  After 3 years it's starts to devalue slowly.  Again no solid numbers but maybe only removing 150 - 300 points. it keeps devaluing over time until around it's 8 or 9th year on your report where it weighs in at less than 20 - 40 points on your credit reports.  By the 10th year, as you have seen it's effect is generaly only worth 0 - 10 points.  This is true with all derogitory information on your credit report.  The older it gets, the less value it holds.  The crown for BK's however, is that many institutions that offer credit (of any kind) won't offer credit with a BK on your report regardelss of how old it is.
Message 6 of 6