The Good Credit Imperative
It’s imperative to have good credit. With poor credit, you may be rejected when you apply for a loan to buy a car, a home, or to start a new business. Put simply, bad credit limits your freedom. Time, patience, and for some, new spending habits will be required to improve one’s credit. However, virtually anybody can create a good credit record in only a couple of years – even if you are fresh from a bankruptcy – if you follow some simple steps and adhere to some commonsense guidelines. Before you commit to bankruptcy, however, first discuss your circumstances and alternatives with an experienced Chicago bankruptcy lawyer.
Improving your credit score begins with an examination of your credit report. If you discover inaccurate information there, write a dispute letter – send it by registered mail – to the reporting bureau to have the inaccuracy removed. Once your credit report is accurate – and thousands are not – determine what debts you owe, and start paying them off. Always make payments on time as far as possible because a recently missed payment – on a mortgage, a car loan, or even a utility bill – can drop your credit score. It’s smart to set up automatic online payments. An established record of on-time payments builds your credit score and over time displaces previously missed payments on your credit report.
When you can, pay more than the monthly minimum. Reducing your debt improves your credit score. If you can be disciplined about your spending for several years, you will no longer be considered a credit risk, and you’re likely to be approved for loans. Understand, however, that credit is an ongoing project – you can never stop building and maintaining it. When someone’s credit is ruined, bankruptcy may be the solution, but often there are other, more practical options. In the Chicago area, if your debts are spiraling out of control, discuss your circumstances at once with an experienced Chicago bankruptcy lawyer who can help you choose the wisest course of action. If your wages are being garnished, if you’re being sued by a creditor, or if repossession or foreclosure are imminent, make the call now.
