Having bad credit can make life difficult when you need a new car, want to buy a house, or need to finance any other purchase. Having good credit provides financial security and freedom. It also costs you less to use credit, because you’ll usually receive a lower interest rate.<\/p>\n<\/div>
How Does Bankruptcy Affect My Credit Score?<\/span><\/strong><\/b><\/p><\/h2><\/div> A credit score is a number that\u2019s used to summarize your credit history and describe\/score your creditworthiness. Creditors look at a buyer\u2019s score to decide whether your loan should be granted and what interest rate you\u2019ll be charged for.<\/p>\n<\/div> How a bankruptcy filing affects your credit score depends on what your score is before filing. If you filed bankruptcy while your credit score is already in the tank, it\u2019ll likely take a dip rather than a huge plunge. However, debtors who have a good credit standing might expect to see a larger drop. However, debtors with a higher score prior to filing might expect their scores to rebound faster and higher as soon the filing event is 12-24 months in the past.<\/p>\n<\/div> You might be surprised to learn that after bankruptcy, you can improve your credit score in as quickly as 12-24 months!<\/p>\n For example, if you had the following types of accounts, your credit score could be about 500 (which is not fantastic):<\/p>\n In as little as 12 months after filing Chapter 7, your credit score might be as high as 662! That\u2019s a 162 point increase!<\/b> How is that possible? Because bankruptcy gets rid of certain factors that decrease your credit score. Once they are gone and you have shown good post-bankruptcy credit, then your score can increase! <\/p>\n Yes, you will be able to obtain a credit card after filing. <\/p>\n Yes, you can obtain a home loan after filing<\/u><\/b><\/a>.<\/p>\nHow We Can Help You Raise Your Credit Score<\/h2><\/div>
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