Improving Your Credit Score

A bad credit score seriously restricts your financial freedom. With bad credit, you may be denied loans to buy a car, a home, or start a business. Improving your credit will take time, patience, and modification of your spending habits to fit within your budget. Almost anyone, even someone who has just completed a bankruptcy, can build a good credit score in just a couple of years by taking the proper steps. If you’re considering bankruptcy, you should know that it’s not for everyone. In the Chicago area, speak first with an experienced Chicago bankruptcy lawyer about your options and alternatives.

When trying to improve your credit score, first review your credit report and check for any errors. If you find mistakes on your credit report, you can submit a dispute letter to have the mistaken information deleted. The next step is to identify the debts you owe and start making all payments on time. A recently missed payment can lower your score, but you can set up automatic online payments for most debts. Establishing a good track record of timely payments will slowly build your credit score; previously missed payments will have a lesser impact over time.

When possible, reduce your debts further by paying more than the monthly minimum. The key to reducing debt is to establish a budget and closely monitor your spending. By reducing your debt, your credit score will improve. In just several years, you won’t be considered a credit risk, and lenders will be more likely to approve you for a loan. Credit, like reputation, is something that you must build, maintain, and protect. When your credit is damaged, bankruptcy is the right option for some people, but you probably have other options. In Chicago, if you’re struggling with overwhelming debt or considering bankruptcy, speak promptly with an experienced Chicago bankruptcy lawyer who can assess your particular circumstances and help you determine the most appropriate course of action.