Your Credit Score After Bankruptcy

After the filing of bankruptcy your credit score will either increase or decrease depending on your previous credit information. Your credit score is calculated based on the following items

  • Your Payment History
  • How Much Debt You Owe
  • Length of Credit History
  • Your Credit Mix
  • Credit Inquiries
  • New Credit

The two largest areas that make up your credit score are “Your Credit History” and “How Much Debt You Owe”.  For example, if you carry a high debt amount on credit cards and have a bad payment history, the filing of a bankruptcy increase your credit score.  Your credit score can improve after the filing of a bankruptcy because the debts are discharged and the credit card companies can no longer report negative marks to the credit bureaus.

Generally, your credit score will return to a satisfactory level after 2-3 years.  You can improve your credit score after bankruptcy by doing the following:

  • Obtain a secured credit card.  The benefit of this card is that it will be reported on your credit report and can build a positive payment history.
  • Make all payments on time
  • Dispute any incorrect information on your credit report
  • Open new credit accounts

To find out about improving your credit score after bankruptcy, contact us by Phone at (801) 432-8682.