Most people are aware of credit scores, as they are used in determining lending rates on homes, cars, and other large loans. Credit scores measure how likely a person is to pay back a loan based on their past credit history of obtaining and paying off debt. But few people know about another metric that lenders have also been using during the past twenty years: the bankruptcy risk score. Rather than determining how likely someone is to pay off their debt, the bankruptcy risk score takes a look at how likely they are to file for bankruptcy. This metric is then used in conjunction with credit reports by long-term lenders to determine interest rates and loan amounts.

Unlike credit reports, bankruptcy risk scores are not available to the public, making it impossible for people to dispute records or view their ratings. Credit agencies have kept this information confidential, claiming that it is "proprietary data"; however, financial experts believe that it incorporation your spending habits, credit card use, and your credit score. The score is calculated on a -200 to 2018 score, with lower numbers indicating lower risk and higher numbers indicating higher risk. While there is nothing that can be done to affect bankruptcy scores, it is important for people to know that they exist and that it may play an important factor in larger future loans.