Pre BK credit score and payment history

[mijd]

I did a search to see if this question has previously been asked. If it has, I apologize. Also, thanks in advance all replies.

Does anyone know if your pre bk payment history will have an effect on your post bk credit score? Also will your pre pk payment history help or hinder or not even affect any credit decision post bk?

I've seen may posts concerning building credit by being an authorized user, but what if any effect will there be on another person's credit score if they were an authorized user on a credit card of mine that was included in my bk?

I hope these questions are not too confusing.

I'm day 64 past my 341 awaiting discharge and closing! Yea!

[backtoschool]

Your pre-bk credit history will definitely affect your post bk fico score. If you had a long time period of not paying on your cards before filing and if you had charge offs prior to filing those will be reflected in your post bk fico score. Also, if you have a foreclosure or repossession pre filing that will also lower your post bk score.

If someone else is an authorized user on a card that you bk'ed it will affect their score negatively. They should dispute that trade line off of their reports and say that they are not the owner of the card, etc.

If you have a strong history of paying installment debt such as car loans in full without lates ,etc then that can help you post bk get a better rate on a car loan.

[ccsjoe]

B2S, I don't mean to hijack this thread, but...is this because the higher your score going into bk the higher it'll be coming out? Makes sense, but I'm sure it isn't that simple right?

[backtoschool]

B2S, I don't mean to hijack this thread, but...is this because the higher your score going into bk the higher it'll be coming out? Makes sense, but I'm sure it isn't that simple right?

It's almost that simple. Pre-bk negatives are allowed to stay on your report and affect your score. So if you file bk without ever missing a payment before you file bk, then your score will be higher than someone who let their 34 credit cards go to charge off for 2 years and then filed for bk. All those charge offs will remain on the report and affect the score.

Here is the other part of the equation: Fico scores are done in "buckets" relative to other consumers with similar profiles. Bankruptcy is a fico bucket. So, once you are in the bk bucket, if you have a clean report post bk you are going to have a higher score because you are being compared to people who have a lot of pre bk negatives on their reports.

[IBroke]

It's almost that simple. Pre-bk negatives are allowed to stay on your report and affect your score. So if you file bk without ever missing a payment before you file bk, then your score will be higher than someone who let their 34 credit cards go to charge off for 2 years and then filed for bk. All those charge offs will remain on the report and affect the score.

That basically what I did - although my derogatory accounts are already older than that. Yesterday, the BK-notation (public record) appeared on my EQ-report and my score only dropped 5 points..

[sillywalks]

It's almost that simple. Pre-bk negatives are allowed to stay on your report and affect your score. So if you file bk without ever missing a payment before you file bk, then your score will be higher than someone who let their 34 credit cards go to charge off for 2 years and then filed for bk. All those charge offs will remain on the report and affect the score.

Here is the other part of the equation: Fico scores are done in "buckets" relative to other consumers with similar profiles. Bankruptcy is a fico bucket. So, once you are in the bk bucket, if you have a clean report post bk you are going to have a higher score because you are being compared to people who have a lot of pre bk negatives on their reports.

Ugh -- that really sucks, but seems to be correct! Before my 'evil house' went back to the bank, my credit score was over 800. The three months late (yep, the bank foreclosed after 3 months) and the foreclosure, I am sitting at 629. Sucks. My credit score has been impeccable for years. Bleah.

Good luck!

[IBroke]

B2S, I don't mean to hijack this thread, but...is this because the higher your score going into bk the higher it'll be coming out? Makes sense, but I'm sure it isn't that simple right?

What B2S wrote is absolutely correct - but the other side of the story is this: If you had a spotless credit-history until you filed, the negative impact of the public record itself (or to use B2S's words, transfer to the BK-"bucket") will be bigger as well. So the higher you were before, the deeper you can fall - not compared to others in the bucket - but just by looking at the "points" your score went down. As I said the public record only cost me 5 points - no go figure how many points I might have lost coming from a spotless history and a score in the 800s. I might have ended up with a higher score than my 568...but...might have lost 200 points and ot just 5.

[ccsjoe]

It's almost that simple. Pre-bk negatives are allowed to stay on your report and affect your score. So if you file bk without ever missing a payment before you file bk, then your score will be higher than someone who let their 34 credit cards go to charge off for 2 years and then filed for bk. All those charge offs will remain on the report and affect the score.

Here is the other part of the equation: Fico scores are done in "buckets" relative to other consumers with similar profiles. Bankruptcy is a fico bucket. So, once you are in the bk bucket, if you have a clean report post bk you are going to have a higher score because you are being compared to people who have a lot of pre bk negatives on their reports.

Strangely makes sense, glad I was so anal about the pre filing reporting, although I still have two derogatory entries to clean up as they were entered post-filing, but I figured with these I would wait until "the other side" when I will have to clean everything up, no need to duplicate efforts. TY

[mijd]

Backtoschool and everyone else who responded to this thread, thank you! This forum is awesome! My lawyer originally advised me to walk away from my condo.... I ended up doing a short sale but there was almost a years lapse between the time I stopped paying my mortgages and the time of the short sale. Of course the HELOC ended up as a charge off which is one of the main reasons I decided on bankruptcy... I was afraid of threatened garnishment. Also I had taken out a lot of cash advances to pay insurance and mortgages payments.
My BK attorney advised me to stop paying CC payments as well. There will be a few cards showing 30 or 60 days up until my filing date. I'm thinking those reports will stay on my CR but will show BK and not charge offs? If my HELOC was a charge off prior to BK but was included in BK will it still show as a charge off post BK?
I'm serious this forum is incredible. I wish my attorney had let me know of this site, everyone here has made me feel so much better about myself... that I'm not alone and I'm not worthless. Thanks to everyone.

[backtoschool]

Backtoschool and everyone else who responded to this thread, thank you! This forum is awesome! My lawyer originally advised me to walk away from my condo.... I ended up doing a short sale but there was almost a years lapse between the time I stopped paying my mortgages and the time of the short sale. Of course the HELOC ended up as a charge off which is one of the main reasons I decided on bankruptcy... I was afraid of threatened garnishment. Also I had taken out a lot of cash advances to pay insurance and mortgages payments.
My BK attorney advised me to stop paying CC payments as well. There will be a few cards showing 30 or 60 days up until my filing date. I'm thinking those reports will stay on my CR but will show BK and not charge offs? If my HELOC was a charge off prior to BK but was included in BK will it still show as a charge off post BK?
I'm serious this forum is incredible. I wish my attorney had let me know of this site, everyone here has made me feel so much better about myself... that I'm not alone and I'm not worthless. Thanks to everyone.

Your lates will show on the credit cards you bk, but they will not show up as chargeoffs, they will show up as included in bk with a zero balance.

The charged off HELOC unfortunately will show up as a charge off in addition to showing up as included in bankruptcy.

[tyson24]

I bet my attorney has wished I never found this site!

He asked me to "let him do his job.."

What I want to know if is he needs a good paralegal

I am driving him crazy and I know it

[backtoschool]

What B2S wrote is absolutely correct - but the other side of the story is this: If you had a spotless credit-history until you filed, the negative impact of the public record itself (or to use B2S's words, transfer to the BK-"bucket") will be bigger as well. So the higher you were before, the deeper you can fall - not compared to others in the bucket - but just by looking at the "points" your score went down. As I said the public record only cost me 5 points - no go figure how many points I might have lost coming from a spotless history and a score in the 800s. I might have ended up with a higher score than my 568...but...might have lost 200 points and ot just 5.

This is very true IBroke. My credit score dropped around 60 points when I filed to around 600-620 or so, but it had already dropped 50 points when my first lates on my credit cards hit. I took the hit to my score in waves before I filed as I became late on things.

[shabam]

It most definitely affects you. I delayed filing and missed a number of payments to ensure the BT were clear. I am yet to establish credit a year later. Denied Denied Denied

[mijd]

Backtoschool, I'm five days after my discharge and I ran a report on all three. All reports are 99% accurate with one small late posted in Sept by the first mortgage servicer WF even though my condo was sold at a short sale in Feb '10. Anyway, even with that hit and the charge off from the HELOC (you were correct thank you ) all three scores are in the mid 600's Also I stopped paying cc's 60 days before I filed but none showed over 30. Two showed no lates at all. Strange though, while I was in the HAMP program both mortgages showed paid for those months until I was denied. After that the lates started again 30 60 90 right up until the short sale.
It has been a learning experience.

[backtoschool]

Backtoschool, I'm five days after my discharge and I ran a report on all three. All reports are 99% accurate with one small late posted in Sept by the first mortgage servicer WF even though my condo was sold at a short sale in Feb '10. Anyway, even with that hit and the charge off from the HELOC (you were correct thank you ) all three scores are in the mid 600's Also I stopped paying cc's 60 days before I filed but none showed over 30. Two showed no lates at all. Strange though, while I was in the HAMP program both mortgages showed paid for those months until I was denied. After that the lates started again 30 60 90 right up until the short sale.
It has been a learning experience.

Those are good scores for right after discharge. You should be able to get a couple of rebuilder cards with those scores.