| Having a copy of your credit score can most often | | | | are automatically paid in full, but the bankruptcy stays |
| mean the difference between going deeper into debt | | | | on your credit report. There is one type of debt that |
| and getting out of it. Because most people do not | | | | bankruptcy will not clear and that is any money that is |
| keep track of their credit score, they often go into | | | | owed to the government from taxes or student loans |
| deep debt without even realizing it. Every time you are | | | | etc. Filing for bankruptcy should not be used for this. |
| late making payments to a creditor or skip one all | | | | Keeping track of your credit score is necessary these |
| together, you are subjected to loosing points on your | | | | days because that score can go down faster than |
| credit score. Your credit score is used to show | | | | you can imagine. When you keep up to date with your |
| creditors and lenders how much they can trust you to | | | | credit score you can prevent it from getting to the |
| pay back your loans and/or purchases when credit is | | | | danger point which is 500 or less and you can save |
| being offered. If your credit score is low, creditors are | | | | yourself a lot of trouble later on like when you want to |
| less likely to offer you credit because it shows that | | | | buy a house. Ideally you should try to keep your credit |
| you are a higher risk customer. | | | | score at 700 or higher but 650 is still decent. If you |
| Creditors have access to computers that will report all | | | | want to get a copy of your credit score, you can visit |
| of your credit habits and transactions such as: bill | | | | and use the credit report to get your credit back to |
| paying, credit card payments, missed and skipped | | | | where it should be. |
| payments, and debt. The more you miss payments, | | | | Your credit score is the best thing that you can do to |
| the lower your score gets. The average person | | | | avoid bankruptcy for all of the reason I mentioned |
| usually starts with a credit score of about 800 and | | | | above. Why wouldnt you get a copy of your credit |
| every time you skip or miss payments, that number | | | | score if that was an assured method for you to be |
| gets lower. | | | | able to avoid going bankrupt? When you correct all of |
| Once that credit score gets to a certain low number, | | | | your credit problems beforehand, you can be sure that |
| usually around 500 or so, is when a lot of people will | | | | bankruptcy will not be an option. |
| file for bankruptcy. When they do this these creditors | | | | |