How Does Bankruptcy Affect Credit Score

Bankruptcy,  Credit ScoreAs far as your credit score or FICO score is concerned, running into bankruptcy will get you a negative effect on your FICO score.  Although the impact will be highly dependent on the entire credit profile of yours, for instance someone with a spotless credit along with a very high credit score can expect a big drop in their credit scores; Whereas, a person with a lot of negative areas on their credit report can experience a drop in the score which may be very modest.

One more thing that you should keep in mind is that the more the number of accounts you have included in your filing of bankruptcy, more will it affect your overall credit score. It can affect you in a long term basis as well as long as the bankruptcy is mentioned on the credit report. This is why it’s necessary to maintain a healthy credit balance all throughout.

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