Filing for bankruptcy obviously decreases your credit score. Once you have been discharged from bankruptcy, it is time to take steps to improve your credit score. The good news is that it does not have to take at least seven years to get your credit score back to a healthy level as it was before your bankruptcy. But few people know the surefire and proven things to do to restore credit scores. As a result, most people do things that actually damage their credit score even more.
This is because there are several fallacies people have been conditioned to believe or think are correct because they seem logical. For example, many people think that your credit score will improve if you have less debt or that on-time payments will improve your credit score. While there is nothing wrong with both these practices, but they are not the primary factors that improve your credit score. In other words, even if you reduce your debt and pay your debts on time each month, your credit score may not improve.
So what really improves your credit score? Contrary to some of the popular beliefs floating around, your credit score improves with a good credit to debt ratio.
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You are right. This can be one amongst reasons why we really need to think twice before filing for bankruptcy. Perhaps, to seek professional help for consultation would be a good option, especially if it's about increasing credit scores and cleaning credit score record.
ReplyDeleteyeah, it is indeed important not to drastically close any open credit accounts when trying to improve credit score. i had not thought about that before.
ReplyDeleteIt's a good thing that I read this blog before i happen to close mine. Such a very informative one. Thumbs up!
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