Credit scores + bankruptcy

[compuwiz1]

Just curious. I googled the topic, but could not find a reasonable answer. Let's say a person filed for bankruptcy in the year 1997. Sometime in 2007 that bankruptcy will fall off the credit report. My question is, around how many points will the credit score go up, once the BK has been removed?

I wonder if the score is currently around 675, if the removal of the BK will let it go over 700?

 

[Dulanic]

Never going to get a straight answer with that, way too many variables to be accurate. I would say there is a decent chance you could gain the 25 points to be above 700.

 

[compuwiz1]

Originally posted by: Dulanic
Never going to get a straight answer with that, way too many variables to be accurate. I would say there is a decent chance you could gain the 25 points to be above 700.

I agree, there is no straight answer. I work in retail finance and some things are amazing. One of those things, is a person who applies for a loan, has a 642 score, as an example. Not the best, but not the worst. This person could probably get a credit card, or deparment store card, if automation determined the outcome. However, upon review, by human eyes, all we see is a 642 score, who has never paid a bill on time in their life. Not only that, but there are at least 5 collections for nsf checks, a collection for the phone bill, and a collection for the electric company.

The only good piece of credit is a car loan, which was paid off over 5 years ago.

This is a banking mystery. How could this person have such a high score, while a person who pays lots of creditors, on time, every month, has a 580 score? :shocked:

 

[thepd7]

Dunno, I am just trying to figure out how to break 750. I think I am just too young so I haven't had enough history. Also I haven't had any major loans (car, mortgage) but I have put over $50k through my credit cards with not 1 late payment.

 

[Whoozyerdaddy]

Originally posted by: compuwiz1
Just curious. I googled the topic, but could not find a reasonable answer. Let's say a person filed for bankruptcy in the year 1997. Sometime in 2007 that bankruptcy will fall off the credit report. My question is, around how many points will the credit score go up, once the BK has been removed?

I wonder if the score is currently around 675, if the removal of the BK will let it go over 700?

My score was 645. 30 days after my BK fell off it was 745. A year after that I was over 800. YMMV. I'm sure there are a brazillion factors that come into play.

 

[TruePaige]

Originally posted by: thepd7
Dunno, I am just trying to figure out how to break 750. I think I am just too young so I haven't had enough history. Also I haven't had any major loans (car, mortgage) but I have put over $50k through my credit cards with not 1 late payment.

I have the same problem. I've put at least 10k through, but am just closing in on 19 myself...hard to get credit as young people =p

 

[Whoozyerdaddy]

Originally posted by: TruePaige

Originally posted by: thepd7
Dunno, I am just trying to figure out how to break 750. I think I am just too young so I haven't had enough history. Also I haven't had any major loans (car, mortgage) but I have put over $50k through my credit cards with not 1 late payment.

I have the same problem. I've put at least 10k through, but am just closing in on 19 myself...hard to get credit as young people =p

A big part of your score is based on the age of your accounts. If you're 19 your accounts can't be that old. Just keep things clean, don't let your balances get too high and your score will go up.

 

[TruePaige]

Originally posted by: Whoozyerdaddy

Originally posted by: TruePaige

Originally posted by: thepd7
Dunno, I am just trying to figure out how to break 750. I think I am just too young so I haven't had enough history. Also I haven't had any major loans (car, mortgage) but I have put over $50k through my credit cards with not 1 late payment.

I have the same problem. I've put at least 10k through, but am just closing in on 19 myself...hard to get credit as young people =p

A big part of your score is based on the age of your accounts. If you're 19 your accounts can't be that old. Just keep things clean, don't let your balances get too high and your score will go up.

Aye...I try.

Most of my everyday purchase cards I pay off monthly, anything big that I can't pay off right away I never let get above 80% balance, etc...

Low credit limits on multiple cards bug me. I really just want high limits on my cards.