At Craft Law, we know how frustrating finances can be. Sometimes filing for bankruptcy can be the best decision for you. If you need assistance filing for bankruptcy in North Carolina, you can trust our law offices to handle your case with expertise and thoroughness. Our offices are located in Greenville, Morehead City, and Rocky Mount, North Carolina, and we’re here to help with all your bankruptcy and debt relief needs.
If you’re in debt and worried about your finances, one way you can work to help your financial situation is to build and increase your credit score. If you have filed for bankruptcy, you’ll likely be required to build your credit in some way. There is no perfect way to build a strong credit score, but here are some tips that you may find helpful:
If you have loan payments to make, pay them on time and every time. You can always set up automatic payments or electronic reminders to help you remember these payments. If you’ve missed payments, try your best to pay your missed loan notes, get current, and work to stay current and pay on time every time.
Don’t get too close to your credit limit. Credit scoring looks at how close you are to “maxing out” your credit. Try to keep your balances low in comparison with your total credit limit. If you close some credit cards and put most of your balances onto one card or on one account, this may hurt your credit score. This is because you’ll get closer to using a high percentage of your total credit limit. Experts advise to limit your credit at 30 percent or less of your total credit limit. Paying off your credit account balances every month will help your score increase.
A long credit history will also help your credit score. This is because one factor of credit scores is based on experience with credit over time. The more experience you have with paying loans on time, the more information there is to figure out your credit.
Do not apply for credit that you don’t need. Credit scoring formulas also look at recent credit activity. If you apply for a lot of credit over a short amount of time, this signals to lenders that your financial circumstances have changed and are worse off.
Make sure to check your credit reports. If you suspect errors, dispute them! If you have old credit cards that you don’t use often or at all, make sure to check that your identity has not been stolen.
There are several other ways that you can build your credit, but these helpful tips should get you started. At Craft Law, we know that getting your finances straightened out after hardships can be a very difficult thing to do. We aim to make the bankruptcy process as simple as we can, so that you can get your life back on track. Contact us today!