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    Credit score increase

    Made it through the entire chapter 13 and now I’m 4 months away from it being eliminated from my record. May 5th will be 7 years from the filing date. I swear the last two are moving slower than the first 5 years. I’ve picked up a couple credit cards over the past 18 months, been charging gas/groceries etc and paying off each month so no balances, credit score is about 700 between the 3 credit bureaus.
    My question is how much of a credit score increase can I expect once this thing is completely off my record? Also I assume it won’t magically disappear on May 5Th so how many days/weeks after that should it be off my credit report? I’d really like to take advantage of the low interest rates and purchase my home. Foreclosed on the last one and my parents purchased the one I’m living in, been renting it for the past 7+ years.

    #2
    Lots of stuff to discuss...

    First, congratulations on your discharge and soon having the Chapter 13 drop off your record.

    Regarding some of your questions:
    • I don't believe there is a hard and fast answer regarding how much your credit score will improve when you hit the seven year mark; best answer, "It depends."
    • Regarding how fast the credit agencies will reflect your change in status; in my experience, Equifax seems to react the fastest in that there is often only a week or two of latency; TransUnion and Experian seem to take more like four to six weeks before their information is updated.
    Latent car nut.

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      #3
      When the bankruptcy falls off, you may see anything from 0 points to a significant increase. As shipo wrote, there is no easy answer because FICO depends on so many factors! You'll likely be moved into another bucket and then be compared with others that don't have a bankruptcy.

      So that fact, combined with your overall credit profile, will determine whether your score goes up or goes down. Yes, it could actually go down. But since you are already in the low 700s, I wouldn't expect it to go down since you are obviously paying things on time and keep low utilization rates.

      Also, your number of inquiries and how recently you obtained credit will matter.

      For what it's worth, you could get the bankruptcy removed from your TransUnion (TU)credit report today. Just by disputing it, TU will do an early exclusion (EE) because it's within 6 months of your 7 year anniversary. Don't try this with the other bureaus as Equifax (EQ) is quite strict. Experian (EX) is known to allow an EE within 3 months of the anniversary.

      Again, I can't tell you the impact of the bankruptcy being removed. Mine went up 29 points when I did a dispute (EE... 6 months before my 7 month anniversary) with TU in December.

      (You can always call them on May 1st and dispute it over the phone. But, as I wrote, you could dispute the public record with TU today since it's less than 6 months. Mine was to fall off in May as well. The credit bureaus go by the month, not the exact day.)
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      I am not an attorney. Any advice provided is not legal advice.

      Comment


        #4
        I only have 2 credit inquiries on my report in the last 2 years and one comes off by the time the BK is clear on my record. Thank you for the info on the disputes/EE’s, I’ll work on TransUnion ASAP and follow up with the others as I get closer.

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          #5
          To underscore what I wrote yesterday regarding different latencies of the credit bureau reporting; I checked today and see up to date information from last week on Equifax, however, both TransUnion and Experian are showing information which was current in late November.

          Edit #1: And no sooner had I posted the above when I get an E-Mail from WalletHub informing me there was updated information on TransUnion. When I checked I found data current as of last week.

          Edit #2: Unsaid in all of this is none of the bureaus have yet picked up on the fact I opened a new Credit Card on 02-Dec-2020.
          Last edited by shipo; 01-11-2021, 11:38 AM.
          Latent car nut.

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            #6
            One more question. In my dispute to Trans Union what do I say (never disputed credit before)? Do I ask for an Early Exclusion on the BK or do I ask it be removed as it should not be there? Thanks for the help.

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              #7
              For Early Exclusion I think that I selected incorrect date and put a comment in the box that it was too old to report. I did this online.
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              I am not an attorney. Any advice provided is not legal advice.

              Comment

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