CLOSINGS: View Closings

My Money Monday - What happens to your credit score when you file bankruptcy?

When you file for bankruptcy, your credit score is can drop between 75 and 200 points.

Posted: Sep. 17, 2018 11:19 AM

Topic: What happens to your credit score when you file bankruptcy?

Link: https://www.firstalliancecu.com/blog/what-happens-to-your-credit-score-when-you-file-bankruptcy

Q: Sometimes bankruptcy is inevitable. What happens to your credit score when you file bankruptcy?

A: When you file for bankruptcy, your credit score is can drop between 75 and 200 points, depending upon where your score was at to begin with. The new score will be based on how many points have been lost. For example, if your credit score was close to 750 your new score would be close to 550.

Q: That’s a pretty large drop. How can someone rebuild their score after bankruptcy?

A: Rebuilding your credit score after bankruptcy takes time. It’s important to make a commitment to budgeting and money management. You can also monitor your credit score regularly. Most importantly, have an honest conversation with your financial institution. Tell them your story; be honest about what lead you to bankruptcy. While you may not think it may help, they may have some solutions to get you back on track again.

Article Comments

Mason City
Overcast
42° wxIcon
Hi: 42° Lo: 27°
Feels Like: 42°
Albert Lea
Overcast
39° wxIcon
Hi: 42° Lo: 28°
Feels Like: 39°
Austin
Overcast
43° wxIcon
Hi: 44° Lo: 29°
Feels Like: 43°
Charles City
Overcast
41° wxIcon
Hi: 43° Lo: 27°
Feels Like: 36°
Rochester
Clear
40° wxIcon
Hi: 41° Lo: 26°
Feels Like: 40°
We're tracking a rebound of temps and the return of sunshine!
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

My Money - Using SMART goals

Image

Dr. Oz - Finding the right hearing aid

Image

Skate for Make-A-Wish

Image

New owners ready to take over Suzie Q

Image

Tracking Sunshine and Cooler Temps for Monday

Image

Thousands volunteer for NCAA Final Four weekend

Image

Immigrant shares story to bring understanding

Image

Stretch Your Inch

Image

Rochester Thaw Festival

Image

Is your bracket crushed?

Community Events