The Credit Score You Don't Know About

Another major difference between the two scores is the way that the score numbers are read. Your credit score is a number between 350 and 850, with a higher score indicating you have better credit. The bankruptcy score is read the opposite way, and its number range is much larger than the credit score's. Your bankruptcy score is a number between -200 and 2018; the lower the score, the less likely you are to file for bankruptcy.

Besides these two basic differences, very little is known about the bankruptcy score. The credit bureaus have kept information about this score and exactly how it is calculated very confidential, claiming that the information is proprietary. Financial experts have speculated that the bankruptcy score incorporates your spending habits and how you use your credit cards in addition to your credit score.

The last glimpse that the general public had of the bankruptcy risk score was back in July 2005 when Experian released state-by-state data about the likelihood that consumers would file for bankruptcy in the next year. In that study, Texas was at the top of the list; Nevada, New Mexico, Louisiana and Arizona rounded out the top five.

At that time, Experian made hints in the media that it might make the bankruptcy risk score available to its customers, but it didn't make any specific commitment as to when that might ultimately happen. Since then, there hasn't been any more public news on the bankruptcy risk score from Experian or either of the other two credit bureaus.

While there is currently nothing you can really do as an individual to access more information about your bankruptcy risk score, it is worthwhile to know that it does exist and may be a factor if your credit score doesn't get you the rates you believe you deserve.