Bankruptcy will improve your credit score and make it easier to get approved for new loans or credit cards. While you are rebuilding credit there are things you can do to improve your credit score quickly, such as paying your bills on time, keeping your credit utilization low, and disputing any inaccurate information on your credit report.
Here is an explanation of how filing bankruptcy can improve your credit score:
- When you file bankruptcy, your debts are discharged. This means that you no longer have to pay them back.
- When your debts are discharged, your credit usage decreases. Credit usage is the percentage of your available credit that you are using. Using less credit is good for your credit score
- Low credit usage can improve your credit score.
- A good credit score can make it easier to get approved for new loans or credit cards in the future.