The Law Offices of Todd Cushner & Associates have been practicing in the areas of bankruptcy, foreclosure defense, commercial litigation and more for 18 years. Since their inception, they have seen a rise in personal bankruptcy, and one thing that can lead to that is people who don’t focus enough on maintaining a high credit score.
When you get in over your head on debt, it can easily lead to financial devastation, loss of your home, property and much more. Before you know it, creditors could be knocking at your door causing you loss of self respect and dignity.
Why Is A Great Credit Score Important?
A recent article in the Wall Street Journal pointed out that many individuals, especially young people, don’t give much thought to their credit score. This can lead to accumulated debt and high interest rates. The surprise comes when people try to purchase their first car, rent or buy a home or even apply for a loan.
One of the first things potential lenders do is look up your credit score, which gives them a quick picture of your financial status. The more debt you have, or even just routinely making late payments, can tag you as a poor risk.
What Makes Up Your Credit Score?
- Payment history
- Outstanding debt
- New lines of credit
- The type of credit you have applied for (cards, car payments, mortgage and more)
- Length of your credit history
Tips to Maintain a Great Score
- Teach your children at a young age why it’s so important to pay bills on time, even if they can only pay the minimum
- Not having any credit cards can work against you since you won’t establish a credit history, so open a few cards, even if you only use them for small purchases
- Don’t max out a credit card or reach your credit limit. That is a quick red flag that you could be headed for bankruptcy
- Make every effort to pay down your debt consistently. Missing even one payment can greatly affect your score.
Expect to See a Flow in Your Score
It’s a good idea to check your credit score at least twice a year. One great resource is AnnualCredtReport.com that allows you to monitor your credit rating for free every week and provides reports from three major bureaus (Equifax, Experian and TransUnion). Our attorneys assist many people in the Westchester area to organize their finances and gain a better understanding of how this whole process works before they get into serious financial trouble or even have to file for bankruptcy. Your score may temporarily go down if a large purchase is made, or may go up if you pay off a large chunk of your debt.
Another reason to check your credit score regularly is to see if there are any sudden irregularities. Credit card fraud is running rampant, and you may see credit cards listed that you never opened. This can easily wreak havoc on your score and destroy the high score you have worked so hard to build.
What To Do if You Can’t Pay Your Debts and Have to Declare Bankruptcy
Declaring bankruptcy can be a complicated process, but our expert attorneys are well versed in every aspect of what takes place. We have even created a series of short, easy-to-understand videos that will explain how it works and will help give some peace of mind if you are being harassed by debt collectors or have accumulated so much debt that you can’t even sleep at night.
We understand that this decision is a huge one. Some of our clients come to us with every intention of paying their debts, but not everyone has the means to do that. Our talented staff treat each person with respect and work with you to fully understand your financial situation while guiding you through every step of the process. This can be a traumatic experience, so we make every effort to carefully listen to your situation and counsel you on the best way to move forward.
It’s important to remember that your score isn’t set overnight. Instead, it’s a long process which you can influence. It’s also why so many people come to The Law Offices of Todd Cushner & Associates. We can handle all types of bankruptcy cases including Chapter 7, Chapter 11 and even those that involve litigation with the largest of banks and creditors (Chapter 13).
Contact us today for a free consultation. Getting your finances in order is one of the best things you can do for your current situation as well as prepare you for a better future.
