Prodigy Real Estate - SI NY Real Estate Blog - Credit Score

Why bankruptcy has a profound impact on you credit.

Posted by Anthony Licciardello on May 26th, 2023

A person's credit score may be significantly and permanently impacted by bankruptcy. The type of bankruptcy that was filed and the rules of the credit reporting bureau determine the precise time frame. Here is a general summary:

Chapter 7 bankruptcy: For people, this is the most typical kind of bankruptcy. In order to pay creditors, assets must be liquidated. Your credit report will reflect a Chapter 7 bankruptcy up to ten years after the filing date.

Chapter 13 Bankruptcy: In this sort of bankruptcy, a repayment plan is made to pay off debts over a three- to five-year period. Your credit report will reflect a Chapter 13 bankruptcy up to seven years after the filing date.

Bankruptcy will significantly lower your credit score while it is still…

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Your credit score in a high interest rate environment is key to keeping costs down. Here is a look at credit utilization score.

Posted by Anthony Licciardello on May 25th, 2023

Credit utilization refers to the percentage of your available credit that you are currently using. It is a key factor in determining your personal credit score. Credit scoring models consider both your overall credit utilization across all your credit accounts and the utilization on individual accounts.To calculate your credit utilization, you divide your total credit card balances by your total credit card limits and multiply the result by 100 to get a percentage. For example, if you have total credit card balances of $2,000 and a total credit limit of $10,000, your credit utilization would be 20% (2,000/10,000 x 100).

Credit utilization is important because it is seen as an indicator of how responsibly you manage your credit. A lower credit…

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