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heydbrown

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Confused about Credit Score Calculation??
I had a bankruptcy processed back in Nov. 2010, and two "court judgments" ruled against me in 2009 that ended up [supposedly?] getting "discharged"(?) with the other discharged debts included in my bankruptcy.

My bankruptcy debts were all related to credit card balances, primarily. Prior to the debt trouble I got into from '08 - '10 I carried a 720 - 730 credit rating for about 15 years.

Since the bankruptcy I opened one credit card account and one "credit-building installment loan" with my bank. The credit card line was only $300 for about 3 years. I used it to pay small expenses and paid off the balance each month on time.

The installment load payback was set up on auto-pmts and, hence, was paid, on time, each month.

I've paid all bills (i.e. utility, and otherwise) since the bankruptcy on time, every time.

About 8 months ago my current credit card company raised my credit limit to $750. Since that time I've continued to pay the balance off each month, on time.

Back when my bankruptcy was processed back in Nov. '10 my credit score went down to 619. As of about 6 months ago the credit score had only inched up to 624. I would have thought it would have gone up a bit more than 5 points over 3 years, hwvr, I pretty much just shrugged my shoulders.

Today I logged on to check my score and it's now dropped 13 points? The only thing I can think of is that, as I said, my credit limit on my ONE credit card has been raised to $750 ("gee, thanks"), and I do tend to charge pretty close to that limit and then pay it off, monthly, in full, on time. My thinking has been that using it and paying it off monthly on time would be positive for my credit rating.

I have heard anecdotal testimonies from others about people who've filed bankruptcy and [apparently] had their credit scores bounce back a "within a few years". Mine has basically remained stagnant despite an excellent payment/credit history the past 3 1/2 yrs, and now has dropped 13 points.

What's the secret??

The only "dings" I see on my incidents list here on Credit Karma is the two judgments & bankruptcy. It gives me a "D" rating in the "Derogatory Marks" category.

In "Payment History" I have an "A".

"Credit Card Utilization" I have an "A".

"Age of Credit History" I have a "C".

"Total Accounts" score is a "B".

And yet, my credit score is 611, rating = "Poor"?

It DOES say that "Derogatory Marks" can take 7 - 15 years to clear from one's credit history, however, again, I hear anecdotal testimonies of people's score bouncing back even with the marks on one's report. Is this false? Maybe I'm taking it personally, however, I just feel my score should be a bit higher by this point -- certainly not dropped?

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Oh, I used to carry a FICO score above 800  That's wiped clean for us, though.

Just not for Donald Trump.

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Did you get a hard inquire?  I have 5 revolving cards that are 5 years delinquent and the initial score it reported for me was 610 (how I could be "better" than 40% of members is beyond me)...  but later it dropped to 595 after I applied for the secured credit card it suggested and was denied.  Hah.

Unless you're Donald Trump you can pretty much forget having a good credit score until that bankruptcy comes off your record (it's 7 years for deliquent payments, I assume the same for bankruptcy).

I have A's for lots of my grades too.  It just doesn't handle deliquent accounts very well, I think.

Reply by
heydbrown

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Thanks for your response.  I just read a few other questions & their responses & surmised I'm pretty much toast for 7 - 10 yrs.  As you said, it just seems odd when my "ratings" in the various categories are three A's, two B's, a C and then the D for the bankruptcy.  After 3 1/2 yrs. of perfect credit performance I guess I would have liked my score to have gone up to at least 650 or so.  I don't get why it would have gone down 13 points within the last 6 months.  Again, unless it has to do with my credit limit being increased on my one card and me using that credit almost to the limit each month.  I thought doing that and paying it off, monthly, on time. would be a positive, not a negative.

The bankruptcy hurts.  Oh well.

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