A credit score is a reflection of your credit history. Filing a bankruptcy will show up on your credit report and be reflected in your score. However, this is not as bad as one might think. Most people that file bankruptcy already have negative credit reporting affecting their credit score, so a bankruptcy doesn’t actually lower their score by much. Another consideration is that filing bankruptcy puts a person in a different “peer group” for purposes of determining a credit score. “Peer groups” are used by FICO to compare consumers against other consumers in similar situations. Bankruptcy filers are a separate group. Once a person files, their credit worthiness will be compared to other people who have also filed.

When someone with a low credit score decides that they want to improve their score, they need to know how to go about doing so. Doing things like opening new lines of credit or closing existing accounts to improve your credit score will do very little to improve your score in the short term. Simply put, you have the power to create the credit score that you want to have, you just need to have patience and put in the effort over time. The most important factor is simply to make payments to your creditors on time every time. However, there are other things you can do to help build a solid credit history. Keep balances low on revolving lines of credit, such as credit cards, and open new credit accounts only when you have to. Be wary of offers to move debt from one credit card to another, it is better to pay off debt than to transfer it. Remember that there is no quick fix to improving a credit score and don’t believe anyone who tells you different.