If your credit score took a beating because your house went into foreclosure or you filed for bankruptcy, do not despair. The good news is that a bad credit score is not permanent. It can be fixed. It can take 7-10 years for improvement, but it might be faster if you are proactive.
If you foresee a credit disaster, map out a plan. If default is looming, then pick the account with the highest monthly balance to fall behind. This will free up more money to pay your other debts. It is better to default on one big account rather than several smaller ones.
If you need to choose which debt to stop paying, pick the credit cards because they are unsecured and a creditor can’t repossess anything. Defaulting on a car loan or mortgage will hurt your credit score more than a credit card. Plus, the creditor can take your automobile or house.
You can start improving your credit score by getting a secured credit card. Generally, these are the only credit cards available to a consumer after their credit has taken a beating.
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SmithMarco, P.C., can help you with credit reporting issues, debt defense and harrassing debt collector. Call now to get your questions answered by an attorney or request a free case review.
Larry SmithConsumer Rights Attorney at SmithMarco, P.C.Larry P. Smith is a consumer attorney and the founder and Managing Partner at SmithMarco, P.C. He has tried dozens of consumer rights cases to verdict and has arbitrated over 700 cases. Additionally, he has amicably resolved over 3,000 consumer fraud, Fair Credit Reporting Act and Fair Debt Collection Practices Act cases via settlement. Mr. Smith has been a guest on multiple radio outlets including WLS and WGN in Chicago providing consumer advice. Mr. Smith also provides leadership and delivers lectures to the National Association of Consumer Advocates, The National Consumer Law Center, and the Chicago Bar Association. Latest posts by Larry Smith (see all)
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