14 Dec I am Thinking of a Number…
When looking atfiling for bankruptcy, many people ask about their credit rating, how bankruptcy will affect their credit score, and they worry that they will never get credit again.
Rebuilding credit after aChapter 7orChapter 13takes some time and patience, and you need to work hard to get your FICO scores back on track. Being concerned about your future credit rating is important, but thepoint of bankruptcyshould not be focused on cleaning up your credit. It should be on getting your financial troubles under control.
- What does FICO stand for and why is it important?
FICO is an acronym for Fair Isaac & CO. This company developed a mathematical equation to determine who will be credit worthy and who is not.
Each credit bureau will issue a FICO score and then based on those three scores the lender will generally pick the middle of the three.
For more information about the importance of your FICO score read Carmen Dellutri’s article “How important is your credit score after bankruptcy?
For more information about your credit report, your credit rating, and how to get a copy of your credit report for free click here.