These days, your credit score is everything. It determines what you pay on a whole lot of things, including mortgages, car loans, personal loans, security deposits, insurance and even utilities.It also determines whether you will qualify for credit and whether you will get flat out “denied”.And, it’s only getting worse. More and more industries are looking to your credit score to determine whether they even want to do business with you...or NOT. The truth is that, for the most part, if your credit score is below a certain level, you won’t even get considered for credit. It doesn’t matter how good a person you are, how much you earn, or even how improved your financial situation is. A low score will get you flat out get “denied”. And, as you have to know, even if you find a company to give you credit, the lower your score the higher the interest rate you will be charged. And, the higher your interest rate, the higher your payment.
High score and low score? These are 2 completely different worlds. Want a credit score as high as 720, 750....or even higher? Well, congratulations. You have taken a giant, important step. You filed bankruptcy. Why is this important? Simple. The single biggest factor in determining your credit score is whether or not you pay your bills “on-time”. Paying your debts “on-time” is the key to a high credit score. How big a key? According to the Equifax Finance Blog: “...a 30-day delinquency could cause as much as a 90 to 100 point drop...for a consumer who has never missed a payment on any credit account”.
As you know, you filed because you had more debts than you could pay. Filing bankruptcy let you get rid of debts, debts you could “not afford”. Hopefully, you got rid of enough debts that, now, you can get back to paying the rest of your debts “on-time”.