Does Bankruptcy Affect Your Credit Score?

How Bankruptcy Affects Your Credit Score 

Bankruptcy is one of the worst things that you can have on your credit report. In fact, you can expect your credit score to drop anywhere from 160 to 220 points. Even if you had a good credit score before filing for bankruptcy, your credit score will likely be fair or poor after you file for bankruptcy.

Your credit score is one of the factors that will determine whether you will be able to get approved for a credit card, loan or mortgage. That is why you may have a hard time getting approved for credit if you have bankruptcy on your record. The GOOD NEWS is that you can gradually rebuild your credit after you have filed for bankruptcy.

Rebuilding Your Credit After Bankruptcy 

You can rebuild your credit by getting a secured credit loan. This is a type of credit card that requires that you make a deposit before you use it. Your deposit is usually what your credit limit will be. For example, if you make a deposit of $400, then this is likely what your credit limit will be.

Secured credit cards typically have higher fees and interest rates. They are not designed to be used for long periods of time. You can also become an authorized user on someone else’s credit card. When the primary account makes a payment on time, you will also get a positive credit report.

Furthermore, it is important for you to keep track of your credit score. Your credit score can change every month.

Contact The Ursulova Law Offices 

You need Brooklyn bankruptcy attorneys to help with your case. Your bankruptcy lawyers in Brighton Beach will guide you through this difficult process. Brooklyn bankruptcy attorneys can also give you tips on rebuilding your credit. Bankruptcy lawyers in Brighton Beach will help ease the stress of going through bankruptcy. The Ursulova Law Offices is focused on making sure that every client gets the best outcome from their case.