Boston Bankruptcy Lawyer

Credit Scores

In the world of finance, economics, and money, there are a number of tools that people use to conduct business. One of these tools, a tool that affects every individual regardless of wealth, is the credit score (also knows as the credit rating). Because credit is so fundamental to U.S. society, the credit score is extremely important.

The credit score is a number ranging from 300 to 850. It reveals whether someone has a strong credit history or not. The higher the credit score, the stronger an individual’s credit history. The lowest scores and the highest scores never reach as low as 300 or as high as 850. Credit scores are based on an individual’s past financial activities, such as:

• Credit card payments
• Utilities bills
• Leases and other contracts
• Debt payments

If people pay their bills on time, their credit score will reflect that by being higher, for example. If they don’t, then the opposite will be true. Similarly, if someone wrongly breaks a contract that individual’s credit rating will be lowered.

Credit scores are used for a number of reasons. When people apply for a mortgage, for example, banks look at their credit scores. When people apply to rent a home, their credit scores are checked. Even for many jobs, employers check the credit scores before hiring people. Credit scores are used for these purposes, and others, to reveal how big of a financial risk someone is. They also help reveal how responsible someone is.

Speak with a Boston Bankruptcy Attorney

If someone has to file for bankruptcy, that individual’s credit score will be negatively affected. If you are considering bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates. You can call us at 1-800-975-5346.