debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
The effects of bankruptcy on a credit score might make debt consolidation a better option
11/30/2009
Recently, credit score provider FICO revealed some of the things that could hurt a person's credit score.
A report from CreditCards.com noted that this marks the first time consumers can know exactly how certain actions may affect their credit score. For example, taking a credit card to its maximum limit can drop a person's score by 10 to 45 points. A bankruptcy can make a score fall by as much as 240 points.
"Getting and maintaining a good score isn't complicated," Craig Watts, a FICO spokesman, told the website. "We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly."
Because bankruptcy can so heavily affect a credit score, consumers might consider other methods of trying to deal with their credit card debt. For example, people facing credit difficulties may consider debt consolidation, which can gather a person's credit card debt into one loan.
Doing so might bring with it a lower interest rate, which could make getting out of debt easier. However, consumers should make sure not to take on additional credit card debt while focusing on consolidation.
More Debt Consolidation News
