Typically if you have a low credit score, within about a year after a bankruptcy it will go above 600, and increase from there. Below are several actual credit scores from actual clients for which their credit report predicts their credit score one year after bankruptcy:
There are a few caveats with these figures: First, this is just a predictor; while the pre-bankruptcy scores are accurate, these are not actual historical figures for the post-bankruptcy scores. What goes into the calculations of a post-bankruptcy score, well, nobody really knows. The people at FICO who make credit scores keep their formula secret, so they can continue to sell their product. Which is one reason I don’t put too much stock into that.
I should also note that none of these figures show what happens when you have a good credit score, probably because my clients who have a good credit score when they come in to see me (and I do get such clients, with good credit but bad debt) don’t need to pay $35 for a credit report because they have a good handle on their creditors and can get a free credit report at www.annualcreditreport.com which does not provide a credit score.
I’d be interested to hear from past clients on anecdotal evidence of pre- and post-bankruptcy credit scores, and their tips on improving credit. I do know that many of my clients from the recession years have contacted me to tell me they are buying a new house, and/or selling the house that once had no equity.
A bankruptcy hits the reset button your credit. Sort of a financial baptism. Mainly your post-bankruptcy credit history is what will matter. Two years after a bankruptcy you can qualify for a mortgage, and getting a car loan won’t be an issue either. Here are some tips on improving your credit score from Experian. You can start getting approved for credit cards immediately after a bankruptcy, and the key of course is to not pay on time, and not use all available credit.