The Truth About Bankruptcy’s Effect on Chicago Credit Scores
The most common myth about bankruptcy is that folks who file will never see a good credit score - but the truth is, they might actually see a better one.
According to an expert from Bankrate.com, it's possible to not only rebuild credit after bankruptcy but to improve to a score of 750 or more. Yes, your score will drop initially after filing, but look at that point as your clean slate. Once your debts are discharged, your credit score can begin its gradual climb back up to - and past - where it was before. But there are a few steps you can take to make your progress even smoother, point out Chicago bankruptcy attorneys.
Chances are, the process of eliminating debt through bankruptcy will help you find a fresh start - and new money habits. But make absolutely certain that you have a system to avoid falling back into debt. After all, what good is spending months or years making over your finances if you're only going to get back on that credit card merry-go-round?
Now it's time to clean up your credit information. If you're following all the right rules after bankruptcy - like paying bills on time and taking on responsible credit like secured credit cards - but your score still isn't improving drastically, something is probably wrong. Request your free credit reports (one from each of the three major credit bureaus) from AnnualCreditReport.com and check them for common errors. Mistakes can range from simple misspellings to the listing of accounts that don't actually belong to you. Make sure to contact each bureau to correct any problems. While you're at it, update personal information like your address and employment history. If you've had the same home or workplace for years, it shows stability - and creditors like that.
But maybe the best way to ensure you'll snap back from bankruptcy stronger than ever is to go through the bankruptcy process with a knowledgeable professional. At DebtStoppers, clients have qualified for loans and credit cards just weeks after filing. For more information about bankruptcy and its effect on your personal financial situation, try a free one-on-one debt analysis with a Chicago bankruptcy attorney here at DebtStoppers.