Be Familiar with Your Bankruptcy Risk Score

Physician's Money Digest, July 2006, Volume 13, Issue 7

Most physicians are concerned withtheir credit score when it comes to financingmajor purchases, such as their home.But there is also a secondary score thatconsumers need to keep in mind that canhave an influence on what you buy: yourbankruptcy risk score. According toBankrate.com, your bankruptcy risk scoreis a secondary score that financial institutionsuse when they want to dig deeperinto a consumer's credit history. This scoreis different from a credit score in that it'smore specific, gauging how likely someoneis to file for bankruptcy. But unlike creditscores, bankruptcy risk scores aren't madeavailable to the public. The reasoning forthis is cloudy, but experts feel it is becausethe firms that spent a great deal of timeand money researching the scoring modeldon't want to give away the value of theirresearch. Despite this, Experian is consideringmaking bankruptcy risk scores availableto consumers so they can get a betteridea of their debt. You can improve yourbankruptcy risk score in much the sameway as your credit score by paying yourbills on time, keeping debt low, and openingaccounts only when needed.