It's never too late to take steps to improve your credit score!
Identify the source causing poor credit & learn to manage your life circumstances.
Unemployment and Loss of Income:

  • Considered a traumatic event especially if you are the family breadwinner.
  • A sudden loss of income will dramatically change your current lifestyle.
  • Losing your job will not directly affect your credit score, in fact your employment and income are not factors directly impacting your credit score. Creditors and the Credit Bureaus may not know you've lost your job unless you advise them.
  • Your credit score could be indirectly impacted if you fall behind in paying your financial obligations, i.e. house payment, car payment, minimum payments on credit cards, student loans, etc.
  • Many employers are now requesting a credit check as part of the hiring process.
  • Read on for the affects of Job Loss on your credit score and how to handle credit and bill payment while you are in between jobs.

Debt:

  • Many people and businesses carry some type of debt, i.e.a home mortgage, line of credit, credit card debt, or student loans.
  • Some debt can be a good thing as it may be used for the purchase of a home, or investing in additional education. Loans taken out for business help them to grow and expand.
  • Too much debt can lead to bankruptcy, putting at risk your home or business.
  • Debt becomes a vicious cycle: the minimum payment you are required to make could equal the amount of interest the credit card company is charging.
  • Read on for the long and short term effects of debt and tips for budgeting your expenses

Credit Card Debt:

  • Most of us use plastic because it's fast and easy, getting into credit card debt is also fast and easy.
  • Credit card companies make money when you don't pay your bill every month, plus the late payment fees, and perhaps their option to possibly increase your interest rate. Debt continues to grow. Credit Cards are convenient, who needs cash?
  • We have become detached from paper money, with technological advancements you can sign up for direct deposit of checks, internet banking and internet deposits of checks via a photo of a check, etc.
  • Read on for tips about the responsible use of credit cards.

Divorce:

  • Not only emotionally draining but commonly, divorce is a financial drain.
  • Dividing assets and debt can create financial burdens and resolving them is a lengthy process.
  • Credit card accounts that are held in one spouse's name are the responsibility of that person after a divorce.
  • Credit problems may arise when the account holder has a low income or is not employed outside of the home.
  • Financial responsibilities will be challenging to meet on a limited income, late or missed payments have a negative effect on the account holders credit record.
  • Read on for tips on how to establish credit and thwart credit issues relating to divorce.

Medical Emergencies:

  • According to some Medical debt is the most common type of collection account, representing nearly half of all reported collections.
  • Almost 1 in 6 credit reports contain medical debt, according to the Federal Reserve.
  • A significant number of Americans report a lower credit rating due to unpaid medical bills.
  • All collection items, medical or not, can lower a person's credit score.
  • Read how medical bills hurt credit and how to protect your credit score risk.

Foreclosure:

  • A foreclosure remains on your credit report for 7 years. It's impact to your Credit Score will lessen over time.
  • While a foreclosure is considered a very negative event on your Credit Score. It will not ruin your score over an extended time.
  • While you keep all of your other payment obligations in good standing, your Credit Score can rebound in as little as 2 years.
  • The important thing to keep in mind is that a foreclosure is a single negative item. Keep this item isolated to a single account, like your mortgage account.
  • If you had a foreclosure, in addition to defaulting other credit obligations, it will be more damaging to your Credit Score.
  • Read more about foreclosure and your options to avoid foreclosure.

Bankruptcy:

  • Filing for bankruptcy will be factored into your credit score until it falls off your report. It may take up to 10 years to fall off your credit report. The impact will lessen over time.
  • After bankruptcy has been filed it's your job to begin re-establishing credit in good standing. A good practice is to obtain a credit card and make all your payments on time.
  • Use 30% of your available credit at any given time; in credit report language it's called Credit Utilization Ratio. This refers to how much credit you have available to use versus how much credit you are using.
  • Car Loans are one of the ways to help get back on the road to good credit. A mortgage or car loan is a secured debt which means the lender has the right to foreclose on your home, or re-possess your car, and this is why lenders are willing to give you a second chance.
  • Click to Learn more about bankruptcy tips and Bankruptcy Frequently Asked Questions