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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.

    Comment


      #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.

        Comment


          #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.

          Comment


            #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.

            Comment


              #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


              • sandlunatic
                sandlunatic commented
                Editing a comment
                Took your advise and Trans Union deleted the BK from my credit report...thank you.

              #8
              sandlunatic I hope your score went up a few points.
              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


              • sandlunatic
                sandlunatic commented
                Editing a comment
                WHOA!! Just checked this morning and it went from 680 to 769 on Trans Union!!! Capitol One also raised my credit limit 3000.00 which raised my available credit from ‘below average’ to ‘average’ which I’m sure helped also. I’m overjoyed right now as I haven’t seen that kind of score since I filed!! Can’t wait to see the other 2 rise also, it’s going to be a looooong 3 months. Thank you again for the advise!

              #9
              Wow! I've got a year and change to go before my Chapter 13 drops off my report, I'm stunned and delighted at your report; I mean, geez, I'm currently hovering in the low 700 range, so I'd be happy with a bump even half the size of yours.
              Latent car nut.

              Comment


              • sandlunatic
                sandlunatic commented
                Editing a comment
                I was not expecting that kind of jump this morning, I yelled so loud the dog ran outside. I was high sixes, except Experian, for some reason they bumped me down to 626 last month and I can’t figure out why, they haven’t updated yet.

              #10
              sandlunatic I am happy to see that you received nearly a 90-point increase by using TransUnion's early-exclusion request for your bankruptcy.

              Yes, it will be a long 3 months for both of us. I'm going to try an early-exclusion (dispute) on my bankruptcy on February 1st with Experian. They typically allow 3 months in advance. We shall see! I would love to see my Experian over 700. Experian is always the problem child.
              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


              • sandlunatic
                sandlunatic commented
                Editing a comment
                I feel your pain on Experian, the other 2 had/have me at 680-695, Experian dropped me from 642 to 626 last month and I don’t know why. They’ve always been 20+ less than the other 2.

              #11
              Life after bankruptcy does exist. You are at the doorstep of an 800-score 7 years post-discharge in a Chapter 13. Congratulations again on your score.
              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


                #12
                Not sure what the heck happened but my Experian went from 674 to 736!! It shows no more public record so I assume the BK fell off, I didn’t dispute with them yet. Just leaves Equifax...I’ll try them in a couple weeks.

                Comment


                  #13
                  Originally posted by sandlunatic View Post
                  Not sure what the heck happened but my Experian went from 674 to 736!! It shows no more public record so I assume the BK fell off, I didn’t dispute with them yet. Just leaves Equifax...I’ll try them in a couple weeks.
                  Wow! You're making me "pine" for March 2022 when my Chapter 13 falls off.
                  Latent car nut.

                  Comment


                  • sandlunatic
                    sandlunatic commented
                    Editing a comment
                    It’s fun watching everything finally go in the right direction. This dang 2 year wait though for the the drop off is what sucks. The chapter 13 itself wasn’t all that bad, we learned to be cheap and budget real quick and lots of side work for myself. Luckily people need electricians, lol. Best of luck on the road to next March.

                  • shipo
                    shipo commented
                    Editing a comment
                    Thanks sandlunatic, looks like that makes three of us looking for a new home.

                  #14
                  Originally posted by sandlunatic View Post
                  Not sure what the heck happened but my Experian went from 674 to 736!! It shows no more public record so I assume the BK fell off, I didn’t dispute with them yet. Just leaves Equifax...I’ll try them in a couple weeks.
                  Equifax is touchy on the dispute of bankruptcies. It should automatically fall off about 1 months prior to the 7 year date. I would not dispute with Equifax as there have been horror stories where they just decided to clean the entire report (including "good" closed accounts). When mine came off from a Trans Union dispute, it went up 29 points.

                  A 60-point jump is not unheard of. I was just in the low 700s and then I let an account go to 89% and got slammed with a 33-piont drop. I am just about to buy another home and this happens. Well, at least next month that issue should be corrected... we'll see.

                  Congratulations on the huge point increase.
                  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


                  • sandlunatic
                    sandlunatic commented
                    Editing a comment
                    Good to know, I will let that Equifax naturally come off. I, like yourself have a home to purchase and don’t need that drama, lol.

                  #15
                  Credit and Credit ratings are the biggest marketing scam ever created. You don't need to borrow so you don't need a credit score. Yes you can get a mortgage without a credit rating it's called manual under writing. Anything else you save and pay cash while debt free.

                  Comment

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