From Unscorable to Mortgage Ready: Rebuild Fast After Bankruptcy
Summary:
- A homeowner discovered they were “unscorable” years after bankruptcy because no active tradelines were reporting. To fix this, they need new accounts that generate fresh data for the credit bureaus.
- A mortgage can fail to report if the servicer stops furnishing data after Chapter 7 or 13, even though it’s allowed. Borrowers can request resumed reporting or a payment history letter for refinancing.
- To become scorable and mortgage ready, open three rebuilding credit cards and one reporting installment line, use autopay, keep balances near zero, and ensure each account reports to all three credit bureaus.
In this episode of the 720 Credit Score podcast, a homeowner discovers they are “unscorable” with three dashes and no active tradelines years after Chapter 7 and Chapter 13. We walk through why a mortgage might not be reporting, what to do when you need to refinance next year, and a simple plan to become scorable fast: three rebuilding cards, one reporting installment line, and clean automation. Watch the video, then use these FAQs to guide clients who need to go from no score to mortgage ready.
Frequently Asked Questions
- Why does my credit show three dashes and say unscorable?
- Why is my mortgage not reporting years after bankruptcy?
- Do I need a reaffirmation agreement for my mortgage to report?
- What is the step-by-step plan to become scorable and mortgage ready?
- What if I cannot get any credit cards right now?
FAQ: Why does my credit show three dashes and say unscorable?
Your credit shows three dashes and says unscorable because there are no recent tradelines reporting, so the scoring models have nothing current to calculate. Add fresh, reporting accounts and you will generate a score quickly.
FAQ: Why is my mortgage not reporting years after bankruptcy?
Your mortgage is not reporting because the servicer claims a Chapter 7 reaffirmation was missing, but your attorney says they can furnish payment history without one. Ask the servicer’s credit reporting team to resume furnishing or provide a payment history letter for underwriting.
FAQ: Do I need a reaffirmation agreement for my mortgage to report?
You do not need a reaffirmation agreement for a mortgage to report, since lenders can furnish post-bankruptcy performance even without it. What matters is accurate, ongoing reporting of your on-time payments.
FAQ: What is the step-by-step plan to become scorable and mortgage ready?
The step-by-step plan to become scorable and mortgage ready is to open three rebuilding credit cards, add a reporting installment line, set autopay on everything, and keep balances near zero. Confirm each account reports to Experian, TransUnion, and Equifax.
FAQ: What if I cannot get any credit cards right now?
If you cannot get any credit cards right now, start by opening an installment builder program first, let it post, then reapply for cards about a month later. Many approvals come through once the first tradeline appears on your file.
