A bad credit score means that you have unpaid accounts reported on your credit history. A credit score can range from 300-900 points. A score in the 500′s or below would mean bad credit. Anything above 750 might be considered good credit. Such a score can affect your ability to qualify for financing a home or car, getting an apartment and may even make you a security risk in your place of employment. This score can be improved by removing delinquent accounts and continued good use of credit. If you have a bad credit score, filing for bankruptcy would be the first step towards fixing it.
August 3rd, 2010 by Administrator
A bankruptcy filing will be reported on your credit history for ten years after filing. However, this initial negative effect on your credit is usually the better alternative to bad credit because of unpaid older accounts. Bankruptcy filers are usually able to obtain additional unsecured accounts and qualify themselves for car loans and mortgages within years of filing. I have been asked if a bankruptcy filing would affect a person’s ability to secure a job. The answer is that the filing might actually help when applying for a job, especially in the government or at a bank as it is the step towards regaining good credit.
August 3rd, 2010 by Administrator
You may remember working on your SAT scores in high school. The results on each section of these college board admissions exams ranged from a low of 200 to a perfect high of 800. Like the Educational Testing Service of Princeton, New Jersey, the Fair Isaac Corporation (FICO) of Minneapolis, Minnesota has a number assigned to each of us, but following us through the rest of our lives. Your credit score is a numerical measure of your creditworthiness. The FICO scale ranges from a low 300 to a high 850. The higher your score, the more financial options you have available to you.
Our payments toward debts we owe and the credit we take out affects our credit score. What does not get factored in would be our work, income, banking and household expenses. Since you are entitled to a free credit report from each of the three bureaus every year, you may wish to regularly keep up with your credit history by pulling a different report every four months without having to sign up for the “free” credit reporting services. Reviewing your report can allow you to correct and improve the information that is there, sort of like practice for standardized testing.
October 1st, 2009 by Administrator
