Credit Score

[howie789]

What is the lowest credit score? Why after bankruptcy, would it NOT be the lowest score? I haven't pd my cc's in 7 months- I had to wait to file- if you file ASAP, would your score be higher?- my "credit" was impeccable (ability to pay at least the mins) before April this year -my credit worthiness (debt load) though was UGLY...one's credit and one's credit "worthiness" are two different things, which is why I'm in the midst of filing- hey, maybe having the lowest score is a good thing -- there's only one way to go- :-)

[HHM]

The lowest possible FICO score is 300.

Usually, a credit score of 300 is reserved for credit "ghosts", i.e. those with no credit.

Filing BK occurs when financial reality hits someone in the face, eventually, all the denial and excuses (i.e. what about my credit score) fall away when there is not enough income coming in to pay expenses.

[CindyLou]

You are more of a credit risk just before BK than after actually. Once you file you have use that magic "card" for another 8 years. Any debt you incur AFTER you file you are fair game to creditor for garnishments, judgements, lawsuits, etc with no escape. So from that angle you are slightly lower of a risk.

Another reason people seem to be a high risk just before BK is the debt to income ratio. They are MAXED out on everything and have hardly any disposable income to pay debts. Once they file the debt decreases substantially and the disposable income increases therefore making them a lower credit risk to lenders.

Now don't misinterpret this to say that BK is a quick fix to your credit...it definitely is not! Most people's score's don't just go up after BK, in fact most will fall some right after filing, but with just a little time of either doing nothing while not incurring any negative history, or starting a little rebuilding, those credit scores will start to climb.

Hope this helps to answer your question a little.

Cindy