Tips To Improve Your Credit Score After Bankruptcy |
Posted: June 4, 2020 |
Going bankrupt not only affect your financial condition but also adversely affect your credit score. There are chances that you may improve your credit score after facing a lot of financial hardships, but there are many ways that you can improve your credit score. Let's have a quick look at what credit score is before we talk about how to improve your credit score after bankruptcy. What is a credit score?When you connect with a lender to borrow credit, they go through your financial history and take a look at your credit score. If the score is good enough, they lend you the money without any second thought. In case your credit score is terrible, you will have trouble managing to borrow money. The credit score falls between mid 700s and above means that you have a good score, and it will never be difficult for you to get approved for a loan. Tips to improve credit scoreRegularly review your credit reportsThe first thing you need to do while rebuilding credit after bankruptcy is knowing where you are and where you need to be. Get a copy of all your credit reports to ensure that there is no inconsistency and error. If you find any discrepancy and error, try to find out ways to improve the same. Play your bills on time35% of your credit score is affected by your payment history. So, if you are thinking over one of the best and most comfortable ways to rebuild credit, make sure that you make all the payments timely. You may set up payment reminders to ensure that you never miss any payment. Avoid closing your accountsMany think that they do the right thing by closing their accounts and lines on the credit card. Where you think that it might be useful to do so, the action does more damage to your credit score. This reduces the credit amount that you already have, and you eventually end up with a low credit score. Avoid credit repair servicesYou might get a lot of calls from credit repair services promising to rebuild your credit. Well, you don’t have to fall for that trap. Even if you choose to go for their services, make sure that you investigate their services thoroughly. Also, you must know that their services can be quiet expensive, and you can work on how to rebuild credit after bankruptcy yourself. Understand your credit limitsWhen you work on re-establishing your credit score, consider knowing your credit limits to ensure that you keep your balances below them. A low credit score might leave you with a low credit limit. Wrapping it upCredit score plays a significant role in determining whether you get approved for credit or not. Well, if you have a bad credit score, then also there is nothing to worry about the same. You can consider the tips shared above and improve your credit score. Also, we suggest you stay patient.
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