Developing Habits to Increase Your Credit Score

Filing for bankruptcy protection has freed millions of Americans from the burden of excessive debt. If you are overwhelmed with debt, and the situation shows no signs of improving, filing for bankruptcy protection can eliminate many of your debts almost immediately. Bankruptcy offers you a fresh start, but a fresh start also means rebuilding your credit. By building positive habits, you can improve your credit score.

Credit scores are generated by a mathematical formula that takes your financial history into consideration. The two biggest influences on a person’s credit score are their regularity making payments and their credit utilization. In other words, making payments on time and not using all your available credit increase your score; maxing out your credit and missing payments lowers it.

The most important step you can take is to pay all of your bills on time. By making at least the minimum payment on your cards and loans every month, you can show creditors that you are a reliable borrower. Also, try to keep your credit card balance below 30% of your maximum. If your maximum is $5000, for example, keeping your balance below $1500 will improve your credit score. Keeping it below $500 will likely improve your score even more.

If you are considering filing for bankruptcy, you are within inches of rebuilding your credit and creating healthy spending habits. By working with the Boston bankruptcy attorneys of Joshua Spirn & Associates, you can help make your bankruptcy filing go smoothly.

Contact Us

To discuss your case with an experienced legal professional, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates today at 800-975-5346.