Your Credit Score

As everyone knows, your credit score is a very important number. Where your score rides can impact your financial future in terms of loans, credit cards, and more. The most common credit score number and the one that is used the most is your FICO score. This score distills your credit-worthiness down to three digits, which can range from 300 to 850. Your FICO score will determine whether or not you qualify for a mortgage, for instance, and what the terms of your loan will be. It is based on your payment history, how much you currently owe compared to what you borrowed on any account, how long you've had a credit history, the types of credit you have, and whether or not you have new credit applications. The most important factors in all of this are your payment history as a borrower and what kind of outstanding balances you are carrying.

Generally, those with a score above 780 are considered to have the best credit-worthiness and can expect to get the best terms on any loan or credit application. A score of 720 to 780 is considered to be a high score but may not get you the best interest rates or terms. A score of 680 to 720 is considered to be acceptable but will not result in the best terms. A score below 680 means you may not get approved for any credit and if you do get approved you will be paying the highest rates for the privilege. Actions which will lower your credit score include paying late on your accounts, carrying large balances, applying for or getting too many credit lines, and defaulting altogether on accounts.

Michigan Bankruptcy Attorney

For those with overwhelming debt, a lowered credit score will ensue when you are unable to make payments on your outstanding balances. You can arrive at such a situation after a job loss, a medical emergency, a costly divorce, or merely through poor money management. Whatever the reasons, getting proper information and guidance about how to handle the matter is vital. That is why you should seek help from an attorney who practices bankruptcy law and debt relief in your local area.

Hensel Law Office, PLLC is a bankruptcy firm located in Sterling Heights and serving clients in Royal Oak, Clinton Township, Warren, South Lyon, and other nearby areas. Attorney Hensel is dedicated to helping those in financial trouble by thoroughly assessing their situation and helping them to find the right legal solution. That solution may involve a Chapter 7 or Chapter 13 bankruptcy petition or some other form of debt relief. Mr. Hensel will provide the legal guidance you need throughout each step of the solution you undertake. He is the only one who will be handling your case throughout its duration. Learn the advantages and disadvantages of bankruptcy as well as other ways to achieve financial health. Contact the firm to arrange for a free consultation to get started.