Bankruptcy will affect your credit score. But, let's face it, your
credit probably isn't that great right now anyways. However, you can
immediately start rebuilding your credit after bankruptcy and increase
your FICO score over time.
I read an article recently in The New York Times discussing the fact that
high FICO scores have one important thing in common: They have low balances on revolving
credit accounts and they make their payments on time every month. This
is a relatively simple thing to do once you’ve gone through bankruptcy,
since you walk out of it with a clean slate. Consistent payment history
accounts for more than a third of your credit score, and low credit utilization
accounts for about another third of your credit score.
So, through a plan that includes a low utilization rate on new credit cards
(i.e., using no more than 20 percent to 30 percent of the limit) and making
consistent on-time payments, you will be directly affecting factors that
account for approximately two-thirds of your FICO score. (Don’t
worry. You will be able to get new credit cards and loans after bankruptcy.)
Another easy, but important, way to improve your FICO score is to make
sure your credit report is accurate after bankruptcy. Everything that
was listed in your bankruptcy case should be removed. A San Diego bankruptcy
attorney can help you identify these items.
Simpler than you thought, right? To find out more about how you can repair
your credit after bankruptcy in Chula Vista, call my office at
Denton Law Group today at