Q:
My bankruptcy was discharged two years ago, I never missed any of my payments during that time on my bills, I bought a home a year ago this month and pay all of my bills on time if not early and still my credit scores have not changed from the 650s,
what does it take to move these scores?
I do not think a bankruptcy should keep your score low if in every other area you are doing well, that only makes people wonder why they are trying so hard to improve and it does not work!
The bank felt my reasoning was good enough to give me a mortgage which I have
honored and paid on time faithfully as well as all of my other bills.
I bought a new car two years ago and have never missed a payment.
Can someone please explain this to me?
Thank you
Kerry
A:
Hello Kerry,
Its sound like you are doing everything you can to make sure your credit is in good standing. I am assuming you filed Chapter 13 bankruptcy and paid your trustee on-time. It also sounds like you have got a couple of other lines of credit reporting on your credit report in good standing. The one thing I have not heard is that you have some credit cards. When your credit score is determined, a mix of credit is part of that process. This accounts for 10% of your overall credit score. If you don’t have any credit cards, I recommend you apply for a couple. This will give you credit score a boost. This is probably the one reason for your credit score staying stagnant. Also since you have a bankruptcy history this will affect your credit score as well. This is considered a risk to the overall credit picture. Once you have a couple of credit cards this should boost your credit score. Remember a Chapter 13 Bankruptcy is on your credit report for 7 years from file date. A chapter 7 is on your credit report for 10 years from file date. These two types of derogatory credit histories will affect your overall credit score until they are gone.
Mike Clover
CreditScoreQuick.com
