Will I ever recover my 750 credit score if I file for bankruptcy?
One of the biggest questions, when you’re considering bankruptcy, is how it will affect your credit score, particularly if it’s a 750. You can recover your 750 credit score if or when you file for bankruptcy. First, though, it’s important to understand how your bankruptcy affected your credit score both in the short- and long-term. Fortunately, there are also solutions in Debt relief Ventura County has to offer. There are a number of steps you can and should take to recover your 750 credit score after you’ve filed for bankruptcy.
Check Your Credit Score
The first step in rebuilding your credit is to understand how your bankruptcy has affected your credit score. How low has the score plummeted? Besides the bankruptcy, what other factors are affecting your credit score? Are there errors in your credit report that are making your credit score lower than it should be? You must work to correct any errors as soon as possible. While it may take time to get your credit report corrected, it can also make the biggest difference in your credit report both now and in the future. With your correct credit report, those details are really just a roadmap that will help you determine the best path forward to recover your 750 credit score.
Pay Your Bills on Time
Your current payment history may be one of the factors that are showing up on your credit score. Payment history makes up 35% of what makes up your credit score, but it may have been part of why you declared bankruptcy. You may have been regularly behind on your payments, and you just didn’t see any way out of your situation. If late payments were a problem in the past, it’s one of the easiest ways to start to turn your credit score around. You can set up automatic payments, set up reminders, or work out other solutions to pay bills on time.
Consider Debt Settlement
Debt Settlement Attorney will positively affect your credit score. With a debt settlement, your credit report will indicate a status of “Settled” or “Paid Settled” in the creditor update. A settlement impacts your credit score, but in combination with other factors, it’s also one way to rebuild your credit to the 750 credit score level. A debt settlement is a great way to demonstrate that you’re working to pay off your debt and rebuild your credit.
Apply for a Loan or Credit Account
As you move forward with rebuilding your credit and improving your credit score, you can show that you are responsible for taking out a loan or opening a line of credit. This new account is just another way to demonstrate that you are responsible, that you can prove a history of on-time payments, and that you are dedicated to improving the details on your credit report after your bankruptcy. It’s also a safety net that can help you make sure that all of your other accounts are paid on time. If you start with low loan amounts or credit and then pay off your debt in a timely and reliable manner, you may also consider getting a co-signer on a loan or credit account, which will make it easier to get approval for credit or a loan. A bankruptcy may have been your best option for a number of reasons, many of which could be outside your control. While your bankruptcy will affect your credit score, it could also be a way to wipe the slate clean. You need a way to get back on your feet and get back to a healthy financial standing in your life. By carefully avoiding former pitfalls, you can work to gradually rebuild your credit score back up to the 750 level that you had before.
In this blog, we have explained to you the process which you can use to get back your 750 credit score, and if you want to know why the credit score is very important for your finance, then you should check this blog too.