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When should credit scores start bouncing back?

mcdanielak
Established Member

When should credit scores start bouncing back?

My scores went down when we filed bankruptcy. They are now Equifax 511 TransUnion 483 and Experian 568. We received a letter of discharge last week. About how long does it take for the scores to start rebounding? I have read that a bunch of people saw a huge jump right after discharge.
Starting Score: 483
Current Score: 624
Goal Score: 750


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Message 1 of 7
6 REPLIES 6
tooleman694
Valued Contributor

Re: When should credit scores start bouncing back?

After you get a credit card reporting.

Message 2 of 7
Love618
Member

Re: When should credit scores start bouncing back?

Mine went up to the 650’s after the discharge was reported by the accounts. Took about a month. Took a small hit the next reporting month applying for credit and opening new accounts. As I’ve paid on time the last 3 months and had low or 0 utilization report, it’s climbed for TU and EQ. Working on inaccuracies for EX to see if that help, as it remains around 590.

There’s a good thread here about rebuilding after BK7, follow that to your situation and ask questions to get help.

As a side note: my student loans were always positive and in good standing and since I knew they couldn’t be included, I kept them in good standing so my “slate” wasn’t wiped completely clean leaving my credit report with 8 years of positive history thanks to my on time student loans. So your results may be different depending on your situation.

From what I have read here, 700 is a reasonable expectation with time and fastidious rebuilding. 750+ is not reasonable until after older delinquent accounts and the bankruptcy fall off.

Good luck!!
Message 3 of 7
tooleman694
Valued Contributor

Re: When should credit scores start bouncing back?

From what I understand, hitting 700 can be done in 24 months. I am 8 months post discharge and I am sitting in the upper 600s. By just following the rules, get a couple CCs, keep util low and get and installment loan going. I should be over 700 soon.

 

Also from what I have learned, the top score with a BK reporting is in the upper 700s. I am going for it!!

Message 4 of 7

Re: When should credit scores start bouncing back?

I saw an average of 20 point jump across the board. But I started working on cleaning up my credit reports a month after I filed. I also was added as an AU to a chase card with a high limit about a month before discharge .
Message 5 of 7
Bill77833
Member

Re: When should credit scores start bouncing back?

Tooleman694 is correct and I would just include one thing based on personal experience. Yes, scores do improve and scores in the high 600's and on into the 700's are possible with short time and high diligence.  HOWEVER, folks that are post BK are graded and scored on a different card than others without BK filing.  In other words, there is little margin for error and/or foregivness if one starts missing payments, or just as bad - runs CC balances up and above their limits.  This behavior to the creditors is that the person's financial habits have not changed and their score will drop 100 - 150 points overnight.  I had scores within 90 days of BK discharge in the mid 600's, and next thing you know here come the CC offers.  I wasn't paying much attention and ran them up and then those $100+ annual fees came due, which of course put me over the limit - and my score went from 650 right down to 550.  To make matters worse, one card (with a $300 limit and horrible customer service) didn't get its payment and reported me 30 days late which caused my score to drop to the high 400's.  Remember, most of these sub-prime CC's charge obsene interest rates, outrageous annual fees, and have lousy customer service and next to zero tolerance for missed payments. 

 

Needless to say, I got my financial s*** together and started educating myself on how the system works (this website has been a HUGE help).  Bottom line is follow the advise on this thread and, if you can absolutely avoid it - DO NOT make any mistakes because you will be penalized harshly until you, me and everyone else in the same boat start getting scored on another card.  From what i understand there are about 4-5 different score-cards (i.e., classifications).  It has taken me about 6 months to get back to where i started, so try your best to follow the advice given on this site and tend the garden weekly.  Just my opinion, good luck. 

Message 6 of 7
VoltaicShock
Established Contributor

Re: When should credit scores start bouncing back?

It should go up some but you will need to start rebuilding which means getting a credit card and having it report.



FICOBeginning (6/2017)Current
Equifax636707
Transunion627725

Experian623726
Message 7 of 7
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