You may have already expected your credit score to be lowered after you complete your bankruptcy proceedings. Rest assured, there are ways in which you can build it back up. Continue reading to learn what credit score you will start with after bankruptcy and how an experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you recover from this.
What credit score will I start with after bankruptcy?
The truth is, there is no established calculation for what your credit score will be after your bankruptcy proceedings. However, below is an approximation that you may anticipate:
- Before bankruptcy, you had a score of 800 to 850: your score will be lowered by 200 points.
- Before bankruptcy, you had a score of 740 to 799: your score will be lowered by 200 points.
- Before bankruptcy, you had a score of 670 to 739: your score will be lowered by 200 points.
- Before bankruptcy, you had a score of 580 to 669: your score will be lowered by 130 to 150 points.
- Before bankruptcy, you had a score of 300 to 579: your score will be lowered by 130 to 150 points.
What should I do to build up my score?
In addition, how soon you will be able to improve your credit score will depend on what type of bankruptcy you filed. This is because different types of bankruptcy remain on your credit report for different amounts of time. Specific timelines you may anticipate are as follows:
- You filed for a Chapter 7 bankruptcy: this may stay on your credit report for approximately 10 years from your filing date.
- You filed for a discharged Chapter 13 bankruptcy: this may stay on your credit report for approximately seven years from your filing date.
- You filed for a non-discharged Chapter 13 bankruptcy: this may stay on your credit report for approximately 10 years from your filing date.
With that being said, below are tips you may follow to build up your score:
- Request your three free credit reports to check that the balance is zero.
- Go forward with a credit repair dispute if you do not have a zero balance.
- Go forward with paying off your non-dischargeable debts.
- Open up a secured credit card and use it to make small, essential purchases.
- Pay off at least 70 percent of your credit limit each month on your remaining credit cards.
- Do not open up more than one credit card every six months, and only do so if you can afford it.
Hopefully, by following the above tips, you may be able to see improvements within the first 12 months after your filing date. For more information on how to build up your credit score after bankruptcy, you must reach out to a skilled Louisville, Kentucky consumer bankruptcy lawyer today. We look forward to collaborating with you.
