Bankruptcy and credit scores are two concepts with great interplay. Your creditworthiness mostly determines your credit accessibility. No doubt, bankruptcy is a factor that affects creditworthiness. However, how much it does is the question.
Hiring a credit repair service in California provides you with an advantage. Yes! These experts can be a great advantage. They are quite useful when filing a dispute for false records. However, many people hold other opinions. They feel that the promises of credit repair experts to “wipe off” bankruptcy is ridiculous. These opinions are right, but having help with reviewing a report can be a great way to improve post-bankruptcy credit.
Since experts are not our focus, let us get down to business.
Well, it is quite simple. Would bankruptcy affect your credit scores? YES and NO! That’s right!
Bankruptcy is not bad in itself. Filing a bankruptcy report can help offset a bad debt. Dire financial situations and constraints use the bankruptcy call as a strategy for paying off debt.
Bankruptcy can ward off potential lenders. Going by how the credit system works, lenders are a crucial part of it.
What are the wrong notions that are held about credit scores and bankruptcy?
Having a positive in your credit report guarantees higher post-bankruptcy score: As much as positive reports are great, they do not affect your post-bankruptcy score. Bankruptcy can be a total turn off for lenders. Lenders do not want to lose money and, that is what a bankruptcy report tells them. However, some have developed a longstanding relationship with their lender. This is supposedly granting them favorable access to credit but, how viable is this option?
Frankly, this next notion is laughable.
Bankruptcy will ruin your credits forever! This is a bit overly dramatic; bankruptcy is capable of causing a great deal of damage but NOT forever. Contact a credit repair specialist in California; review your report, dispute anything untrue. This might just be helping your credit.
With the right strategies, you could be having a score of 650 – 700 in no time.