Credit Rehabilitation | FICO Score | Credit After Bankruptcy
Your FICO score determines whether creditors will lend you money, how much, and at what interest rate. The higher the FICO score, the better. As your debt to income ratio increases and you owe more money, your score decreases. Every late payment, failure to pay, or charge off, decreases your credit score. If you default on your loans without filing bankruptcy, your credit is likely to be so damaged that you will not be able to repair it by yourself.
Although it may seem like you will never get through this difficult time, the truth is there a many effective ways to restore and rebuild your credit. I can work with you one-on-one to restore your credit and help you get your finances back on track after filing for bankruptcy. Generally, your FICO score will improve immediately after you file for bankruptcy, as your debt to income ratio is greatly reduced or eliminated. Within a few short months you will start to see offers for credit cards, as these companies know that you will not be able to file for bankruptcy again for another eight years. Car loans will be available also, although many individuals prefer to wait because the interest rates will be better in time. Even home loans are available to clients who have filed bankruptcy in time. The myth that you can’t borrow or finance for “seven years” simply isn’t true.