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08-18-2012 07:29 PM
I am only a bit over two years discharged from Chap 7 BK. I had an uppper 670 credit score, then it mysteriously dropped down to 638. I noticed the only change is the BK is no longer reporting. Is this good or bad in the long term?? I am hesitant to call or dispute and ask that it be put back on, but dont really know much about this issue.
08-19-2012 10:36 AM - edited 08-19-2012 10:36 AM
Rebucketing. It's a good thing.
08-19-2012 12:04 PM
I'm no expert, but might it reappear later? Also, how many accounts did you have IIB? Sometimes, those accounts might get deleted and then get added back on by the creditors, you should be watching your reports frequently.
I don't know how it is with auto loans, but with a mortgage application, you still have to disclose you filed and were discharged from BK, because the underwriter will find it, the BK Ch 7 is public record and the info can be accessible to lenders. (that is if you apply for a mortgage before the BK falls off your report - 10 years from date of filing)
I'm not sure I would ask the CRA's to reinsert it, they would have to verify, and if any major accounts were IIB, those could come back on your report and cause you a lot of misery. I would do nothihng at this point, monitor your reports once or twice a year, get your scores at least once a year (or more often if you're in the position for asking for a loan). Make sure you're checking all three CRA's for your reports, see if the BK is not reporting on all three, but monitor regularly if you can.