Did You Know? About Chapter 7 Bankruptcy

The credit reporting agencies tell us that your Chapter 7 bankruptcy will stay on your credit report for up to 10 years. However, what many people don’t know is that approximately 2 years after filing for chapter 7 bankruptcy, your credit score will improve if you maintain a good bill payment record. Additionally, you may be able to acquire new credit cards after the 2 year period.

Positive Score Factors

Delinquencies on your accounts.
A delinquency is a payment that was made 30 or more days late. None or very few delinquencies on your account can cause your score to improve.

What You Can Do
Keep paying bills on time every month since it is important for maintaining a good credit score. If you remain behind with any payments, bring them current as soon as possible, and then make future payments on time. Over time, this will have a positive impact on your score. Continue reading Positive Score Factors

Maintaining Good Credit Habits

– Don’t max your credit cards
– Keep a healthy credit utilization ratio (most creditors consider a ratio of 35% or lower as healthy)
– Make your monthly credit card payments on time
– Keep tabs on your scores and check your credit report regularly

In general, keeping a low balance on your credit card or paying your credit card off each month is ideal. However, letting your credit cards sit idle, without activity, it may not benefit you as the creditors have nothing to report.