Reader mail: bankruptcy and will AU accounts lower the scores of the account holder?
I am considering your AU services, and I have some questions:
- I have a chapter 7 Bankruptcy that was discharged on my credit report a few months ago. Can someone with a chapter 7 Bankruptcy qualify for your AU services?
To me it makes no difference whether there’s a bankruptcy or whatever other negative reporting. What counts is whether the AU account will benefit you and if you don’t have any surviving revolving accounts, an established positive AU account with a few years history will definitely help a lot with scores. But, do you NEED the high scores right now? Probably not.
However, it is most important that all the discharged accounts are reported CORRECTLY and that’s especially difficult with Trans Union due the date closed being critical for FICO scores (only TU) and a missing or incorrectly Date Closed can easily lower the FICO scores by 50+ scores.
I have had a number of clients who opened a couple new accounts after they got the credit reporting corrected, followed my other recommendations and within 2 years from the bankruptcy filing their credit scores were over 700.
- Is the credit score of the person offering the AU services affected when someone with a low credit score becomes an AU?
Thanks,
...
The score of the account holder is NOT affected unless the AU uses the account. Obviously, balances impact on scores and if they aren’t paid and you get lates, you really destroy the scores.
I found that AU accounts are a great way to improve scores in COMBINATION with CORRECT credit reporting and NO new lates or collections.
Posted by Christine on 06/05/2007 at 09:18 AM
2003 Suit (appealed, Experian filed credit reports on PACER) • Fair Isaac - credit scoring fraudware • FICO 08 -- Authorized Users • (0) Comments • Permalink
