When looking for a loan, of course bankruptcy is bad. This is because creditors will look at your bankruptcy credit report entries to determine if you are a better credit risk than when you filed for bankruptcy.
But creditors look at other things on your credit report in addition to bankruptcy status. After all, a bankruptcy will only cause your score to drop by between 150-300 points. So, even though your bankruptcy will remain on the books for a number of years, you should start working to improve your credit score as soon as possible.
So although, your credit score will be adversely affected by your bankruptcy filing, it’s not as drastic as you might think. What is probably more important, however, is the extent to which your credit score will be affected by errors in your credit report.
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