How Bad Credit Affects You
The aim of a credit score is to provide potential lenders, landlords, employers, and others with an assessment of the perceived risk that you pose based upon your past actions in financial agreements. Though it is not the only information that will be gathered, it may be the most important piece of the puzzle that these entities are putting together to create an accurate picture of your reliability. A good credit score can help to reduce the impact of some other concerns, but there is little that can be done to erase the impression of a poor credit history.
If you have found yourself in a difficult financial position and are being subjected to an onslaught of collection calls and letters, it may be time to consider filing for bankruptcy protection. To learn whether bankruptcy may be the right solution for your current struggles, contact the Birmingham bankruptcy lawyers of Greenway Law, L.L.C., at (205) 324-4000.
Negative Effects of Poor Credit History
A successful bankruptcy filing in which a debtor upholds all the terms to which he or she agrees can be an effective means of serving to rebuild credit after an episode of financial difficulty. There are other options, but generally speaking, bankruptcy is likely to achieve the most sweeping effects. The failure to take action can cause you to continue experiencing the following negative effects of poor credit:
- Higher interest rates for loans and other financial instruments
- Unfavorable contract terms and harsh penalties for lapsed payments
- Lack of access to loans and financing for a variety of purposes
- Denial of access to desirable housing and employment opportunities
Let us help you to begin taking the steps necessary to repair your credit. Contact the Birmingham bankruptcy lawyers of Greenway Law, L.L.C., at (205) 324-4000 for more information.