Suze Orman Life after BK

[robbndawn03]

Good morning,
I woke up early this morning and turned on the TV and there was suze life after BK.. What my concern, was that she stated that after getting he BK off your record after 10 years it will definitely lower your score her advice was to refi this girls home or buy a car before BK falls off.. How could this be ? Especially after 10 years....this girls score was 720...

[Roadrunner]

I have an idea of what she was talking about, though there is no way to know for sure if the scores would drop...

What I've heard is there are different 'credit pools'. So someone with a bankruptcy is not going to be in the same pool as someone without a bankruptcy. You could be at the top of the score range when compared to other people with a bankruptcy, but when the bankruptcy comes off you'd be compared to others who don't have one, so your place in the pool could change.

Guess its a little like schools & education. You may be top of the class in a school with supbar education, but 'average' if you change to a school that has high educational standards.

[jetset]

Right on the nail roadrunner..."Pools" is the keyword.

Robb, I watched that very same episode the other morning, probably the same time as you were watching.

When you declare bankruptcy, you are put in a "pool" and rated along with others who have declared bankruptcy...well after 10 years your bankruptcy falls off...(and as suze says, you probably have to tell them to remove it) and you swim in the pool with those who haven't declared bankruptcy. Apparently, your graded by Fair Isaac differently in each pool, and when "transfered" to the non-bankrupt pool, your score will decrease. Suze's final word was take out a mortgage or credit card now...then have the CB's remove your bankruptcy...if you feel this isn't right, try to refi after the bankruptcy comes off and see what kind of rate you get...

adam aka jetset