Queens, NY (PRWEB) December 16, 2013
For many people who go through a bankruptcy proceeding, the future is a place of possibility, and an opportunity to create a new chapter in their lives. There are many steps people can take after bankruptcy to ensure that they get on the right path toward fiscal responsibility. One of those is realizing the importance of credit scores. Queens Bankruptcy Attorney Bruce Feinstein, Esq., is talking with clients about credit scores and the steps they can take, now and in the future, to ensure a safer financial future.
Mr. Feinstein says that keeping an eye on your credit score is an important habit to have, both before and after filing for bankruptcy. A recent article by Quizzle published on October 29, 2013 shows that 65% of adults have never viewed their credit score. The same article shows a helpful infographic that shows how ignoring your credit score can cost you. It explains how a lower credit score can mean a higher mortgage rate, costing tens of thousands of dollars in the long run. It also speaks to the importance of checking for errors on your credit report. Many of the consumers who filed disputes were able to have their report modified, resulting in a change on their credit score.
“So many people think that their credit can’t be fixed, or that filing for bankruptcy will ruin their credit, and that’s simply not the case,” explains Mr. Feinstein. The key is to be diligent about checking your score and take the appropriate steps toward rebuilding it after bankruptcy. “Credit repair companies are often scams that are not worth the time or the money, but getting a copy of your consolidated credit report is a good first step,” he says.
This report includes the three major credit reporting agencies in one document, which you can check for errors such as accounts that are not yours or negative information that should have been removed after a certain period of time. This will also show you if you have accounts that are past due, which you should pay as quickly as possible.
Many people also worry that if they check their scores they will lose points, This is a common misconception. Mr. Feinstein explains that there are several types of credit inquiries. Hard inquiries will remove points from your credit score; these happen when a financial institution pulls a credit report when determining loan approval. Soft inquiries occur when an individual checks his or her own score, or during a background check for a new job. People should feel comfortable checking their score and using credit report data from vetted sources.
There are many other ways to improve your credit after bankruptcy. “The score is not a some secret number that you have no control over; people need to understand that they can have control over their credit score and take steps to improve it over time,” says Mr. Feinstein. Some tips include having a mix of credit types such as a secure credit card and a loan that you know you can pay on time and in full. Pairing this with a budget that includes contributing to a savings account is a healthy way to jump-start good credit.
Bruce Feinstein, Esq. and his team are located in Queens, New York and have been helping clients file for bankruptcy in Queens, Kings, and Nassau counties for over 15 years. Visit the Law Offices of Bruce Feinstein, Esq. at bfeinsteinesq.com or call (718) 514-9770 to reach his New York office.