Bankruptcy usually does not make your credit score any worse if you already have bad credit. Chances are your credit score has already suffered due to late or missed payments. Bankruptcy can remain on your credit for up to ten years, while defaults can stay on your report for up to seven years.
Bankruptcy and Defaults
Sometimes creditors look more favorably on bankruptcies than a large number of defaults on your credit report. There are some cases where bankruptcy will make it easier to obtain future credit because the lender will see that you have no other financial obligations.
When trying to get credit, lenders usually look at your income and income stability. Most credit decisions depend on the judgment of individual lenders.
Resisting the credit temptation
No matter how you eliminate your debt, you want to resist getting more credit cards, so you don’t find yourself with too much debt again.
If you get do get another credit card, try to get a secured card or a card with a lower credit limit that you could comfortably pay off every month. Another possibility is a charge card, like American Express that requires you to pay your balance in full every billing cycle. These charge cards you have no interest charges or credit line, although you do run the risk of overspending more then you can pay each month.
Get loans only for sound investments like a home, education, or your business. You want to avoid using your credit card and paying interest on things like clothes, movies, and meals out.
If you are overwhelmed in credit card debt and unable to make the minimum monthly payments, contact a Columbus bankruptcy attorney to find out what options you may have to get a fresh financial start.