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CCs for NO BKs?

golfmomfor3
New Contributor

CCs for NO BKs?

If we do not file BK, but have occasional lates with no repos, liens, etc, and high income, why scores so much lower than BKs scores?
 
Been reading this forum for about a month, and if CCs approve BKs, they seem to decline those with no BKs?! but occasional lates, but mostly good history.
 
Looking for someone in the same boat?
Message 1 of 4
3 REPLIES 3
fused
Moderator Emeritus

Re: CCs for NO BKs?



golfmomfor3 wrote:
If we do not file BK, but have occasional lates with no repos, liens, etc, and high income, why scores so much lower than BKs scores?
 
Been reading this forum for about a month, and if CCs approve BKs, they seem to decline those with no BKs?! but occasional lates, but mostly good history.
 
Looking for someone in the same boat?


occasional lates tank your FICO scores. Do you have CCs? If yes what are the CLs and balances on each. High CC utilization will also tank scores.
Message 2 of 4
baileyboy
New Contributor

Re: CCs for NO BKs?



golfmomfor3 wrote:
If we do not file BK, but have occasional lates with no repos, liens, etc, and high income, why scores so much lower than BKs scores?
 
Been reading this forum for about a month, and if CCs approve BKs, they seem to decline those with no BKs?! but occasional lates, but mostly good history.
 
Looking for someone in the same boat?


When you file BK, your scores are compared to others who have filed. So if your scores are low, but high relative to others who have filed - who may never have gotten over 650 or something, then your credit is better. When you have never filed, you are compared to everyone else who hasn't filed who may have scores up to 850, so your scores may actually be lower... Make sense?
Message 3 of 4
fused
Moderator Emeritus

Re: CCs for NO BKs?



baileyboy wrote:


golfmomfor3 wrote:
If we do not file BK, but have occasional lates with no repos, liens, etc, and high income, why scores so much lower than BKs scores?
 
Been reading this forum for about a month, and if CCs approve BKs, they seem to decline those with no BKs?! but occasional lates, but mostly good history.
 
Looking for someone in the same boat?


When you file BK, your scores are compared to others who have filed. So if your scores are low, but high relative to others who have filed - who may never have gotten over 650 or something, then your credit is better. When you have never filed, you are compared to everyone else who hasn't filed who may have scores up to 850, so your scores may actually be lower... Make sense?


FICO refers to these as scorecards, buckets or pools. It is true that each of us is placed in a specific pool with others who have similar credit files, histories and risk rate. When someone sees a sudden and unexpected score drop with no changes on their CRs, I suspect an upward movement to a higher pool has taken place.
Message 4 of 4
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