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Topics addressed on July 21, 2010:
Score didn’t improve after bankruptcy removed
I recently had a bankruptcy removed from my credit report, but it didn't change my score. When or how do you update the credit score?
What many people do not understand is that there isn’t just one credit score, and it is not part of your credit report. There are in fact many different credit scores used by lenders to meet their particular risk management needs.
Scores reflect what is in your credit report at the moment is the report is requested. So, credit scores are not updated as changes are made to your credit report, but rather are calculated as a credit report is accessed, and then only if a scoring model has been selected and requested by the report user, such as a lender. Most lenders do use one or more scoring models. Each lender selects which scores they will use depending on the type of lending they do or their particular customers.
For example, a credit union would likely use different credit scores than a national credit card company to assess lending risk because of differences in both the types of lending they do and the types of customers they serve.
Removal of the bankruptcy won’t be reflected in credit scores until a new copy of your credit report is requested and a new score is calculated.
It could be as simple as a timing issue. You might have requested your report too soon after requesting that the bankruptcy be removed and the credit files had not yet been updated. Or, you may have other severely negative items in your credit history, so even the bankruptcy was removed, those items are still causing you to score poorly.
To be certain that the bankruptcy has been removed, request a copy of your credit report. You can get a free copy once every 12 months at www.annualcreditreport.com. You can also purchase a credit score at that time, which will tell you if your history is now scoring in a better risk category.
If the report was from your lender, make sure that they obtained a new report and calculated a new credit score after the bankruptcy was removed. If your risk level changed, that should be reflected in both the report and the score calculated using the new information.
Thanks for asking.
- The "Ask Experian" team