Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

How Much Can A Credit Rating Really Mean?

You hear all this talk about credit scores and their importance—but what does a credit score really mean? Your credit rating is a way to keep track of how you’ve handled your credits and debts. Paying your bills on time is one way to raise your credit score. Conversely, if you made a late payment on your credit card or your rent or defaulted on a loan, it goes on your credit report and lowers your score.

Why is it important? Your credit score affects your ability to secure loans and get credit cards. Would you loan money to someone with a history of late payments or no payments? Probably not. The credit industry thinks the same way.
You should be doing all that you can to improve your credit score. Check your credit report and make sure every detail is correct—from your address and phone number to the balances and payment history on your loans. Of course, paying your full payments on time will improve your score too.

Contrary to popular belief, filing for bankruptcy has let many people actually improve their credit score. Since Chapter 7 bankruptcy clears your debts, it provides an opportunity to start from scratch and rebuild your credit the right way. If you are behind on your payments, it is important to look into your options to start improving your credit today.