22 Jun Licensed Insolvency Trustee on Increasing Your Credit After Bankruptcy
What is a credit score?
A credit score is a rating given to you based on your financial history. It allows future lenders to see if you are a risky borrower. This score is created with numerous factors including history of your previous payments, how much money you owe to lenders currently, types of credit you have used, how many times you have applied for credit, and length of your credit history. A credit rating can range anywhere from 350-900—the higher your credit rating is, the better.
Why do you need a credit score?
A credit score is important when making large purchases or applying for loans. If you are looking to obtain a mortgage from a bank, the bank will want to ensure that you will eventually pay the loan back, and by looking at your credit history, they are able to see your previous financial habits. You could also be required to show your credit score to a landlord if you are renting a property—they also want to see that you will be reliable and pay your rent in a timely manner.
Where can you obtain your credit score?
There are multiple online resources that make it very simple to obtain your credit score. The most widely used companies are Equifax and TransUnion. You can also receive your credit score from your bank. It is a quick process and something that can be obtained within 24 hours.
What happens to your credit score after filing for personal bankruptcy?
When you file for personal bankruptcy, you are in a situation where you have expenses and debts that are unaffordable. Your bills overwhelm you, and you can’t afford to pay all of your back in a timely manner. When you claim bankruptcy, your credit score is reduced because you never paid those debts on time.
How do you increase your credit score after filing for personal bankruptcy?
The best way to increase your credit after being discharged from bankruptcy is paying your bills on time. Live within your means and create an affordable budget where you can pay all balances off. Filing for bankruptcy will decrease your credit rating, but with help from a licensed insolvency trustee in London, you can reduce your financial stress.
Contact McLennan & Company Ltd. in London today if you are overwhelmed with creditors, and need help eliminating your debt. We will find the best solution to fit your financial situation. Our main office is located in London, but we offer appointments in Woodstock and Ingersoll as we have satellite offices in both locations.
Call us today! 519-433-4728