Credit score after bankruptcy is removed

JamesPortal91

My bankruptcy has been removed today, but there has been no change in my credit score. 

I am adding this for peoples information. I expected a change as credit clubs Experian score is much higher than my normal experience score. Credit club didn’t show my bankruptcy so was expecting good things, but unfortunately there was no change.

la531983

Luckily for you, the three digit score is a meaningless metric not seen by any lender and not used in lending decisions, so you can rest easy.

JamesPortal91

Other people have mentioned this. I always thought this was important and a higher score gets a better deal?

Now the bankruptcy has finally been removed, there is nothing negative on my credit file, therefore I was expecting a jump. I guess it only happened today so might be reflected in a few weeks.

la531983

JamesPortal91 said:

Other people have mentioned this. I always thought this was important and a higher score gets a better deal?

Not in the UK, no.

MorningcoffeeIV

Your score should have dropped with such a big change. 

Maybe it will plummet next month...

JamesPortal91

The bankruptcy has been on my file for 6 years and has officially been removed today. Why would that cause my score to drop?

MorningcoffeeIV

It's a big change. Credit scores generally hate change. 

Lenders, on the other hand, assess what the data means, not simply whether it's changed.

That's why it doesn't matter what score you get given.

spinningsheep

JamesPortal91 said:

The bankruptcy has been on my file for 6 years and has officially been removed today. Why would that cause my score to drop?

Like was said above, the "score" the CRA gives you is a fictional made up number of how credit worthy THEY think you are, not a lender. When a  lender checks your credit report, they never sees the "score" only the data and the history contained there in, they make a decision on whether to do business with you and at what rates etc based on that information.

Over the pond is a different story 


The American FICO score which our "score" given by the CRA'S is based on here, is a different kettle of fish and the rating has meaning ie higher the number, better your RATING. eg "you need a score of 790 or more to be eligible for this credit card" 

In the UK your "score" will fluctuate up or down on a whim whenever there is a change, good or bad, to your credit report. Pay it no heed. 

The bankruptcy will not be seen by anyone viewing your credit report, focus on building a positive history and forget it happened. 

MrFrugalFever

Your data held on the credit reports is what is important, not their marketing gimmick scores. It is generally considered the higher the score the greater chance of acceptance but that is only because the scores are the brokers own assessments of you and it stands to reason there's a greater chance of being accepted.

Your score won't just update immediately, there's cycles the credit reference agencies go through so you will need to wait before you see any change but as mentioned above, it's irrelevant.

I would wait a week and then request a statutory report from all 3 agencies - Equifax, Experian & Transunion (Experian are a pain and send a code in the post but the other two are pretty instant access). Go through them with a fine toothed comb and ensure there is nothing on there that should be. Any creditors as part of the bankruptcy should have been removed at the point whereby the Bankruptcy was removed.

Dispute any incorrect information, providing you know factually that it is wrong.

Check the insolvency register to ensure that the information held on you has been removed also, it is generally kept on the record for 3 months after closure of the case.

Good luck on your journey to recovery - don't be tempted to rush out and apply for credit just because you see a jump in your fictitious credit score(s).