FICO score up, why?

[Lajazz947]

Since I filed my score has gone up 23 points.

I would guess it has something to do with the amount of outstanding debt that I have on the books now.

I am just half joking but at this point I could be back up where I once was into the 700's before long.

Is there a reasonable answer to this?

Thanks.

[BigJohn]

When we filed, our score dropped a few points, but 8 days later we was back to where it was before filing.

[Lajazz947]

When we filed, our score dropped a few points, but 8 days later we was back to where it was before filing.

Mine has not gone down at all.

A real mystery to me.

I am keeping my home payments current and I have gotten rid of two car payments but when I did that it did not reflect a change at all.

One was a lease end and the other a voluntary repo which I thought would have been a REAL negative.

[relief13035]

Mine has gone up too.

[Lajazz947]

Great article on why FICO score go up

Mine has gone up too.

http://www.smartmoney.com/personal-finance/debt/declaring-bankruptcy-can-improve-your-credit-score-20681/

[JRScott]

It could be your debt to income ratio and how they figure the scores now.

[PoGirl]

The actual score calculation is a guarded secret, but here's a rough breakdown:

Payment history - 35%
Amounts owed - 30%
Length of credit history - 15%
New accounts - 10%
Types of credit - 10%

So, since the amount owed got wiped out, I would guess that's why you see the score increase.

[magyar123]

It could be your debt to income ratio and how they figure the scores now.

Don't think that has anything to do with scoring. CRAs don't know what your income is.
And neither do longtime creditors. 5 years ago you might have applied revealing your income at that time. They don't know what your income is now.

[relief13035]

Whatever the reasoning might be, I'm liking the results. We have 12 more days in the 60-day club and I am determined to have a FABULOUS fresh start. I am budgeting now and even have a savings account that is growing. Absolutely amazing!

[floridian]

im not sure i understand... so your fico score goes to 700+....but then when you go to finance something, you get turned down because of the bk on your record...
whats with that?

[relief13035]

im not sure i understand... so your fico score goes to 700+....but then when you go to finance something, you get turned down because of the bk on your record...
whats with that?

I think you are right Floridian. I'm at 707 right now, but I highly doubt anyone would finance me.

Guess it's a good thing that I don't need anything financed right now huh!

[floridian]

this fico thing has alway been an enigma... when i had a low 618 fico, everyone wanted to finance me with nothing down..

[FloridaGuy]

Different for me

I guess I'm in a different boat than you guys. After filing my score dropped 180 points. It has since rebounded a little, but is still 100 points lower than when I filed. (Not yet discharged). My wifes, dropped 205 points... it has rebounded more than mine, but is still 140 points lower than when we filed.

Our credit history however, was immpecable prior to filing. No late or missed payments in 20+ years, literally the week we filed showed the first late payment for each of us (as we quit making payments about 60-90 days prior to filing)

I'm hoping when all accounts get updated after discharge, and are IIB, and $0 dollars they will come back up.


Just think though... if you paid cash for everything, never had credit cards, etc. your credit score would suck, and have a hard time getting loans, etc as well.

Doesn't make sense, so much rides on the credit score.

[StartingOver08]

FloridaGuy, check the body of your reports. I found that Advanta, a business cc of mine, is not reporting the BK 7 correctly. In fact, they continue to report it at 30, 60 , 90 etc day late -even after filing (that is when the lates occurred!! LOL). So I have to get that reported to the CRA's.

Something similar may be happening to your report.

[HHM]

Well, you discovered what most people don't realize, a BK is not devasting to your credit.

Bascially, it is probably your debt to open balance ratio that changed. The zeroing out of most/all of your accounts can act as a major counter balance to the negative impact of the BK.