The lower a bankruptcy risk score, the better. According to Bankrate, bankruptcy risk scores range from negative numbers to 2,000. While these scores are hidden from consumers, businesses use them to decide whether to extend credit to a customer.
Credit reporting agency analysts say that complex mathematics and data analysis are used to determine a bankruptcy risk score. Paying bills on time, keeping debt low and opening as few accounts as necessary are sure fire ways to lower a bankruptcy risk score. Some factors affecting the score are not as easily changed, such as the state that one lives in.