For people who have struggled with debt and/or bankruptcy, their credit score plays an important role in helping them obtain a new car, mortgage, or even a new job. While one of the best steps that people with credit card problems can take is to obtain the assistance of a knowledgeable attorney, it is also good advice to understand the various available ways to improve your credit rating.
Ask for a Credit Line Increase Rather Than a New Card
Requesting an increase in your credit limit is a better idea than obtaining a new credit card because each time a person fills out an application for a new credit card, a company will check his or her credit.
The mere presence of an error on a person’s credit report will not automatically weaken that person’s credit rating. Some of the major factors that can be associated with a person’s credit rating and impact his or her credit score include payment history, amount of debt, age of accounts, account mix, and history of credit applications.
Create a Plan to Improve Your Credit Score
If the information reflected in your credit report is accurate and you want to take plans to improve it, you need to make a plan, and a bankruptcy attorney can help. Some of the best tips include the other recommendations made in this article.
Address Any Collection Accounts
It is a wise idea to entirely pay off your debt instead of repeatedly transferring the amount to a new account. By removing the amount once and for all, you can address the issue rather than continue to accrue interest on the amount.
Limit Credit Applications
There are various options offered for credit card applications that can entice a person to sign up, but it is often a better idea to avoid creating additional accounts until your credit score has improved.
Do Not Close Old Credit Card Accounts
Even if you no longer use your credit card, never close the account. A person’s FICO score is calculated based on several factors including the length of a person’s credit history. As a result, you should leave your credit cards open.
Study Your Credit Report for Errors
A person is able to obtain copies of his or her credit report every year without the request influencing the overall credit score. After receiving your credit report, you should examine the document for any errors because mistakes are a common occurrence on your credit report and can result in a decreased credit score.
Utilize the 30% Rule
Credit companies suggest that a person stay 30% below their credit limit. People who spend 30% or more of their limit discover that their credit scores decrease.
Talk to a Knowledgeable Bankruptcy Lawyer Today
Bankruptcy is a complicated process, which is just one of the reasons why people are often uncomfortable about going through it. Attorney Jim A. Lyon, however, has the knowledge necessary to make sure that your bankruptcy case resolves in the best possible manner and will remain committed to fighting tirelessly for the compensation you deserve.