Picking up from Boost Your Credit Score with These 6 Steps (Part 1), below, we will spotlight two more steps that people can take to make great strides in improving their credit score and, as a result, their overall financial status.
When working to improve your credit score, focus on paring down the open lines of credit you have and avoid taking out new lines of credit if possible.
If you have more substantial financial issues, are considering filing for bankruptcy and are ready for some specific advice regarding your best options for debt relief, Denver Bankruptcy Attorney Jon B. Clarke welcomes you to attend an initial consult to learn more about your options.
Additional steps that can be effective at boosting your credit score can include:
- Avoiding taking out new lines of credit – While adding more lines of credit to your existing credit obligations will end up increasing the number of monthly payments (and overall debt) you owe, it will also impact your credit score in a negative manner (especially if your debt-to-income ratio is already skewed towards more debt than income).
As a result, don’t get lured into new credit offers that seem to offer you cash back or other bonuses. In these situations, the carrot is not significant enough to make the associated stick worth it when it comes to your credit score.
- Paring down your credit lines if you have too many – In most cases, people who are trying to boost their credit score should focus on closing some of their open lines of credit (after they have paid off the debts on those lines of credit). Having your credit narrowed down to one to three lines not only keeps your monthly payments more manageable and your debt lower, but it also has a positive impact on your credit score.
As you make the decision regarding which lines of credit to close, it’s usually best to close those that are associated with the highest interest rates and/or that have been open for shorter amounts of time (as the length of your credit can be beneficial to your score).
Be sure to look for the upcoming third part of this blog for some final information regarding how to improve your credit score and your overall financial standing.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.
