| Scorecard groupings are not talked about nearly | | | | Why? Because you were originally in a category with |
| enough so I thought I would take a moment to explain | | | | other BKers, and the fact that you had a 680 probably |
| the because they can cause unexpected credit score | | | | means you had some positive accounts as well or |
| changes. | | | | atleast that the BK was far behind you. In short you |
| A scorecard is a category that the consumer is | | | | may have been near the higher end of the BK |
| classified into for determining your credit score. It is | | | | scorecard. If you manage to remove the bankruptcy |
| based upon grouping your report with others with | | | | either naturally e.g. Statute of limitations, or through |
| similar credit profiles. For example, people who have | | | | credit repair, you will move to another scorecard, |
| bankruptcies on their credit file are grouped into one | | | | probably with people with decent, or at least better |
| "scorecard". People with chargoffs on their credit are | | | | credit (no BK's) |
| grouped into another so on and so fourth. | | | | Now, where you were at the higher end of your |
| Consumers with a bankruptcy on their credit reports | | | | previous scorecard group and were just moved to |
| are on a different scorecard than consumers who do | | | | another group, chances are you might be at the |
| not have a bankruptcy on their reports. When you | | | | bottom of that new group and may have to spend |
| move from one scorecard to another, the formula | | | | some time climbing that ladder. Sort of like a ballplayer |
| used to determine your FICO score changes as you | | | | who may be an allstar in farm leagues, may not be so |
| are "re-grouped." | | | | great if moved up to the pro's. |
| Here is where some people are often surprised. Let's | | | | What you can do to avoid being thrown at the bottom |
| say you have a bankruptcy and a couple charge offs | | | | of a new group is have all your affairs in order. Pay |
| on your credit and your current credit score is 680. I | | | | down your credit card balances, remove all accounts |
| bet you think if you get that Bankruptcy deleted your | | | | listed as "in bankruptcy" first. Etc etc etc. Don't panic, |
| credit score would improve right? Would you be | | | | you have made progress, but its kind of a two step |
| surprised if your credit score dropped after deleting | | | | forward, one step back process. |
| the bankruptcy? There is a good chance it will. | | | | |