For many Americans facing overwhelming debt, bankruptcy can feel like the end of the line in terms of financial freedom and independence. In reality, bankruptcy is not at all a concluding process but a promising new beginning. Filing for bankruptcy with the help of skilled professionals is the first step you can take on the road to economic success.
Once you handle your debt by filing for bankruptcy, you can turn your attention to improving your credit score. A strong credit score can help you get higher limits on credit cards, secure approval for loans, and even avoid security deposits on utilities and some products. Our experienced lawyers at Bradford Law Offices recognize the importance of looking to the future as you are preparing to file for bankruptcy. You can severely decrease the stresses of bankruptcy by making plans for your financial stability.
Strategies for Improving Your Credit Score
- Keep credit card balances low: your credit score is impacted by how much revolving credit you have versus how much you are currently using. Paying off as much of your credit card as you can, instead of making the minimum payment every month, can raise your score.
- Pay all bills on time: in a world where most of us juggle multiple bills every month, some debts simply fall through the cracks. Even though these accidents are understandable, they can seriously affect your credit score. Set reminders on your calendar or phone to start good bill-paying habits. You can also look into easy auto-pay options.
- Settle in for long-term credit lines: the longer you have a source of credit open, the better it looks for your overall credit. Even though it will take time, maintaining a line of credit, as opposed to opening and closing many credit sources, makes you seem more capable of handling debt.
- Limit your number of credit inquiries: the more applications you fill out for credit, the more desperate you can seem to potential creditors. Even if these inquiries are innocent, they can impact your credit score for a time. The good news is that some inquiries that occur when you are shopping around for the best option, like for auto or student loans, are rolled into a single inquiry instance.
One principle tactic for improving your credit score is to develop good habits that you can sustain over long periods of time. Once you have handled your debt, you can start implementing your strategies for achieving a high credit score.
How We Can Help
The road to financial stability is not always easy, but with a strong plan and determination, you can make the journey successfully. The Raleigh bankruptcy lawyers at Bradford Law Offices can put you on the path to future successes by helping you handle your existing debt. Call (919) 758-8879 today for a consultation with a knowledgeable legal professional.