All borrowers or debtors are viewed as risks by creditors
. Making them see you as a good risk should be your goal. Improving your credit score is the best way to be seen as a good risk. The following repair credit tips will help raise your credit rating as well as helping you avoid bankruptcy in the long run.
1. Get your hands on a copy of your credit report.
If your score is below 400 you really need to take steps to repair your credit quickly. Even a score below 500 would set of warning bells in the minds of creditors. 600 and below is acceptable but you ultimately want your score above 600 so that creditors will see you as a good debtor capable of paying them back their money. Your credit score is yours and there are many free credit reports available that will help you keep tabs on your score.
2. Consider loan consolidation
When you take your current debts and consolidate them into one loan you are likely to reduce your total monthly payment. It will also make it easier to pay off these debts.
3. Make loan payments by the due date
Timely payments will be noticed by creditors and give them assurance that you take your debt seriously and are prepared to pay off your debt.
4. Avoid bankruptcy
Bankruptcy will stay on your credit record for 7 years. That's 7 years where you probably won't qualify for a home or car loan or even a very small loan. There really is no greater damage that you can do to your credit ranking.
Of course no one has the goal of filing for bankruptcy. But sometimes when debt becomes too much we find that we have no other choice. If you are leaning towards chapter 7 bankruptcy it is imperative that you enlist the assistance of a bankruptcy attorney.