How Bankruptcy Affects Credit Score

joselaholla · 07-30-2010, 09:10 PM

If you have been struggling with debt, you may have considereddeclaring bankruptcy and are concerned because you are afraid of thedamage a bankruptcy has on your credit score. Abankruptcy will have a serious impact on your score. Depending on howyou maintain your credit after declaring bankruptcy, you may be able tobounce back after all.

The Initial Effect On Your Score

When you declare bankruptcy, you are essentially declaringyour inability to pay your creditors. Since your credit score measureshow well you pay your debts, your score will suffer at first,dropping as many as 100 points. Your bankruptcy also stays on yourcredit record for several years, discouraging many lenders fromextending you lines of credit without charging high interest rates.

How Your Score Can Recover

However, a bankruptcy also cancels many of your old debts,which means you may finally have enough money to pay off any debts notcovered in your bankruptcy settlement. You can also take on one smallline of credit, perhaps a single credit card. While repairing yourcredit after bankruptcy will take a while, making responsible choicesafter your bankruptcy will bring your score back up.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.More... (http://www.creditorweb.com/articles/...dit-score.html)

If you have been struggling with debt, you may have considered
declaring bankruptcy and are concerned because you are afraid of the
damage a bankruptcy has on your credit score. A
bankruptcy will have a serious impact on your score. Depending on how
you maintain your credit after declaring bankruptcy, you may be able to
bounce back after all.

The Initial Effect On Your Score

When you declare bankruptcy, you are essentially declaring
your inability to pay your creditors. Since your credit score measures
how well you pay your debts, your score will suffer at first,
dropping as many as 100 points. Your bankruptcy also stays on your
credit record for several years, discouraging many lenders from
extending you lines of credit without charging high interest rates.

How Your Score Can Recover

However, a bankruptcy also cancels many of your old debts,
which means you may finally have enough money to pay off any debts not
covered in your bankruptcy settlement. You can also take on one small
line of credit, perhaps a single credit card. While repairing your
credit after bankruptcy will take a while, making responsible choices
after your bankruptcy will bring your score back up.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More...

nickyT · 07-31-2010, 05:55 AM

You can very well apply for the credit after bankruptcy is removed. Just get more guidance over this issue from Bankruptcy Lawyer, they may provide you better knowledge.Bankruptcy never been the option to be consider, it is a situation which you should avoid. Try and find out solution with bankruptcy lawyer or expert.

07-30-2010, 09:10 PM	#1 (permalink)
joselaholla Administrator Join Date: Aug 2009 Posts: 1,142 Threads:	How Bankruptcy Affects Credit Score If you have been struggling with debt, you may have considereddeclaring bankruptcy and are concerned because you are afraid of thedamage a bankruptcy has on your credit score. Abankruptcy will have a serious impact on your score. Depending on howyou maintain your credit after declaring bankruptcy, you may be able tobounce back after all. The Initial Effect On Your Score When you declare bankruptcy, you are essentially declaringyour inability to pay your creditors. Since your credit score measureshow well you pay your debts, your score will suffer at first,dropping as many as 100 points. Your bankruptcy also stays on yourcredit record for several years, discouraging many lenders fromextending you lines of credit without charging high interest rates. How Your Score Can Recover However, a bankruptcy also cancels many of your old debts,which means you may finally have enough money to pay off any debts notcovered in your bankruptcy settlement. You can also take on one smallline of credit, perhaps a single credit card. While repairing yourcredit after bankruptcy will take a while, making responsible choicesafter your bankruptcy will bring your score back up. This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.More... (http://www.creditorweb.com/articles/...dit-score.html) If you have been struggling with debt, you may have considered declaring bankruptcy and are concerned because you are afraid of the damage a bankruptcy has on your credit score. A bankruptcy will have a serious impact on your score. Depending on how you maintain your credit after declaring bankruptcy, you may be able to bounce back after all. The Initial Effect On Your Score When you declare bankruptcy, you are essentially declaring your inability to pay your creditors. Since your credit score measures how well you pay your debts, your score will suffer at first, dropping as many as 100 points. Your bankruptcy also stays on your credit record for several years, discouraging many lenders from extending you lines of credit without charging high interest rates. How Your Score Can Recover However, a bankruptcy also cancels many of your old debts, which means you may finally have enough money to pay off any debts not covered in your bankruptcy settlement. You can also take on one small line of credit, perhaps a single credit card. While repairing your credit after bankruptcy will take a while, making responsible choices after your bankruptcy will bring your score back up. This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More...

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07-31-2010, 05:55 AM	#2 (permalink)
nickyT Junior Member Join Date: Jul 2010 Posts: 2 Threads:	You can very well apply for the credit after bankruptcy is removed. Just get more guidance over this issue from Bankruptcy Lawyer, they may provide you better knowledge.Bankruptcy never been the option to be consider, it is a situation which you should avoid. Try and find out solution with bankruptcy lawyer or expert.