In my Asheville, NC bankruptcy law practice, I meet with people daily who have damaged credit scores.Their scores have typically been weighed down by 30 and 60 day late payments being reported by their creditors month after month.Although a bankruptcy filing is a negative which stays on your credit report for 10 years, it will also prevent the 30 and 60 day late payments from continuing to be reported.
Try Credit Karma (Photo: Skippyhaha)
I frequently have clients tell me that their credit scores are higher than before they filed a bankruptcy case within a year (or less) after their Chapter 7 discharge.
But what can you do to make the most of your bankruptcy discharge and increase your credit score as quickly as possible?First, I do NOT recommend spending hard earned money on credit services which charge you a fee (upfront or monthly).Those services typically cost more than the value they provide.
Credit Karma is a free online service (they make money by selling advertising space on their website) where you can use a credit simulator to see the types of activities which raise and lower your credit score.For instance, if you apply for credit too much, the simulator will demonstrate the type of damage you can do to your score.Or, if you make timely payments, the simulator will show how your credit score can be improved.If Credit Karma is not for you, check out the steps recommended by the Federal Trade Commission to rebuild credit.
Frequently, the first step to improving distressed credit is to achieve a “fresh start” through bankruptcy.If you are interested determining what options exist for you, I would be pleased to speak with you during a free initial bankruptcy consultation.
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