How long does it take to get a 700 score after bankruptcy?

[Anonymous]

Hi rain,

I was at 700 three months after CH 13 BK discharge.  Six months after discharge my mid FICO score was 723 when we refinanced our mortgage - my high FICO was 741.  Two years later, my scores are still in the same range and will stay there, I think, until the BK ages off my reports next year. 

However, remember there's a difference between CH 7 and CH 13 because of the difference in length of time between filing and discharge.

My CH 13 was filed June 05 and discharged Feb 09.  So I was at 700 three months after discharge; four years after filing.  And I had to clean things up quite a bit after the discharge.

CH 7's discharge just a few months after filing - so I'm not sure how long after filing or discharge on a CH7 before folks look at 700 FICO scores.

Hope that's somewhat helpful.  And, of course, folks can get up to a 760 FICO with a BK reporting.  I over-apped and decreased my AAofA and my FICO score, but I'm still pretty happy with where I am.

[ScoreBooster]

After a CH7, a score in the 700s is quite possible 2 years after filing. If you are pro-active right after discharge and follow all other "golden rules" (utilization on CCs, no late payments etc.), that can be achieved.

[Hopelives2]

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@Anonymous wrote:

as long as that bankruptcy is on your report, you will probably not be able to get that score to 700.  

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That is blatantly false.

The way to 700+ is this:

1.  get CC's either secured or unsecured

2.  use them and PIF before due date

3.  DO NOT use between due date and statement date

4.  rinse repeat until you have 3-5 cards

5.  take EACH AND EVERY bad item that is on your CR and offer GW or PIF even if it was included in the BK (there is no penalty for asking them)

6.  rinse repeat until each of those is gone or your score is above 700

Often stated, utilization on revolving debt is critical during restoration period.

If you reaffirmed any of your debt, make sure those stay on track and on time.

I am only 11.5 months post ch 7 bk, my util is now 1% (after finally figuring out when each card reported what balance to CRA) and I just bought a Cadillac Escalade with my CU loan at just slightly above a normal rate.  IF I had figured out the statement date/credit reporting date I would have had a normal rate.

Buy your score here.  Use the simulator.  Get collections off your credit report as noted above.  I should be at 725 in about a month, just slightly 1 year post bk, AND foreclosure.

[Anonymous]

Just wanted to add that both DH and I were able to achieve 700+ FICO scores after BK without opening 3-5 cc's.  YMMV - it always does.

For me, though, I would recommend taking it one CC at a time.  One open card is likely enough if it is a bank card - it was for both of us. 

Then wait 6-12 months before app'ing for each, if any, additional cards.  When you're rebuilding, you don't want to add a lot of short-term cards, and there's - quite frankly - not a lot of long-term cards available at the beginning of the rebuilding process.

My biggest FICO score loss came when app'ing for too many cards (i.e. 3-5).  IME, take it much much slower than that.  Check the impact of each new account when opened, and as it ages; calculate AAofA and how it will be impacted with each individual app; and don't be trigger happy on the app buttons.

It only takes a few over-anxious apps to dilute your FICO score building, and it can take many many months and even years to pop it back up to where you'd built it.

And best wishes to y'all on your good work!

[Hopelives2]

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@Anonymous wrote:

Just wanted to add that both DH and I were able to achieve 700+ FICO scores after BK without opening 3-5 cc's. 

For me, though, I would recommend taking it one CC at a time.  One open card is likely enough if it is a bank card

Check the impact of each new account when opened, and as it ages; calculate AAofA and how it will be impacted with each individual app; and don't be trigger happy on the app buttons.

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Agree. I took three CCs but am now in gardening mode with my CCs, the auto and student loans, and keeping everything PIF.

[ScoreBooster]

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@Anonymous wrote:

For me, though, I would recommend taking it one CC at a time.  One open card is likely enough if it is a bank card - it was for both of us. 

Then wait 6-12 months before app'ing for each, if any, additional cards. 

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But in the LONG term, wouldn't you be better if if you would obtain all desired cards at once? It certainly tanks your AAoA the moment you open the accounts - but in the end, your AAoA will be "older" compared to getting these cards one after another, right?

[Anonymous]

Intersting...TU 714 EQ 729 EX 704.  BK discharged 12/09.  Having difficulty obtaining credit for a car.  Secure job for 6.5 years, solid annual income, I have an Orchard card with $1500 limit, and a company card from wells fargo that reports on my credit for $5000 limit.  Both cards are used and paid in full every month.  Got so frustrated gave up shopping for a vehicle loan.  My utilaztion is at 4% any thoughts as to why I can not secure a car loan?  Does it need to be 2 years removed from my BK?

[Anonymous]

Hi dkutty,

Welcome!  Glad you're here and posting.

Sorry you're having difficulty with the auto loan.  Where have you been shopping for  your auto loan?  It may be different for you, but we've found auto dealers were more difficult than setting up financing on our own through a bank or CU.

We had good luck post BK by going through our favorite local CU.  We didn't have any current accounts open with them, but they write more auto loans than anyone else in our state.  We had an easy quick approval and a great rate, but maybe we just lucked out.

[Anonymous]

I have not tried a credit union.  All rejections have indicated the bankruptcy on our credit report.  I did try going through a dealership but felt the interest rate of 9% for a new car was not justified.  Especially, with a 20% down payment.  I did not try a credit union, but don't you have to be a member?  Most people had luck with capital one auto but I was declined there as well.