A solid credit score is an important tool that helps you in many ways. Unfortunately, just a few missteps will cost you big when it comes to maintaining a good credit score. Filing for bankruptcy is one of the best ways to repair your credit after making mistakes, but it’s not going to happen automatically. There are several things you need to do after your bankruptcy is complete to improve your credit score.
We can help you with this process.
First, it’s important to understand why your credit score matters.
Your credit score is the number lenders use to determine if you are a smart risk for them. People with high credit scores are more likely to be approved for loans and receive better lending rates than those with low credit scores.
Even if you do not intend to borrow money now or in the future, having a solid credit score is still important. Most people want to know they can borrow in the event of an emergency, even if they are not actively pursuing a loan. Good credit means you’ll be able to get a good loan rate should you need to buy a vehicle or put medical expenses on a credit card. And if you want to buy a home and cannot afford to pay cash for the entire listing cost, you’ll want to get a low rate on a mortgage loan.
Avoiding credit for your entire life is nearly impossible and it’s probably not something you’d want to do even if you could. That’s why it’s so important to protect your credit score and do all you can to rebuild it if it has taken a hit.
The Balance shares more information about why credit is an important financial tool.
Many people do not even know their credit score. They might assume it’s good or bad based on their credit history, but without knowing the number you cannot be sure where you stand.
If you’re considering bankruptcy or you’ve recently filed and you’re ready to move forward and improve your financial situation, pulling your credit report is essential. You’ll be able to review it to make sure there are no mistakes and you can learn your score.
Scores on the lower end – between 300 and 600 – are poor to moderately poor. In this range, you can assume you’ll be denied by lenders or be forced to pay high-interest rates. Average scores range from 600 to 700. This is where most people fall and about what creditors expect to see when they pull someone’s credit. 720 is considered a good score because it means you’re currently utilizing credit, you have some debt, but it’s under control and you’re a smart risk for lenders. The highest possible score you can get is 850, so if your score is 720 or above, chances are you’re in great shape financially.
You can find out what your credit score is a few different ways, including:
When you work with us to file bankruptcy, we’ll discuss your credit score and explain what you can do to improve it.
Most people begin to see improvement in their credit score within a year or two after completing bankruptcy. As negative items drop off of your credit report, your score improves. Filing for bankruptcy has a negative influence on your score, but that doesn’t mean it won’t gradually improve. Your score is fluid and the harder you work to repair your credit, even after the bankruptcy, the higher your score will be.
Our 720 Credit Score program teaches you how to rebuild your credit over the course of three months. You’ll learn how a small secure loan from a credit union will positively impact your credit report. We’ll also guide you toward the best credit card offers and show you how to manage your borrowing opportunities to have the greatest positive effect on your score.
When you work with us, you don’t just receive guidance during the bankruptcy process. You’ll receive information that can help you for the rest of your life when it comes to money and credit. For more information or to learn more about our 720 credit repair program, contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.
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