SEVERE WX: Winter Weather Advisory View Alerts
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
18° wxIcon
Hi: 24° Lo: 7°
Feels Like: 5°
Albert Lea
Overcast
18° wxIcon
Hi: 22° Lo: 4°
Feels Like: 5°
Austin
Overcast
19° wxIcon
Hi: 24° Lo: 7°
Feels Like: 8°
Charles City
Broken Clouds
19° wxIcon
Hi: 24° Lo: 9°
Feels Like: 7°
Rochester
Overcast
18° wxIcon
Hi: 22° Lo: 4°
Feels Like: 3°
Tracking more snow tonight into Sunday.
KIMT Radar
KIMT Eye in the sky

Community Events