The Games That The Credit Industry Plays With Your Credit Score!
While practicing bankruptcy during the financial crisis that started in 2009, I consistently saw the games that credit card companies play to manipulate your credit score for their benefit. I saw how the credit card companies (all of them!) lowered credit limits drastically to barely above the balance on their customer's credit card. they did this even if no payments were missed and in the absence of any other red flag from the borrower. That has the effect of lowering credit scores because part of the credit score is how much available credit you haven’t used. When one credit card company does that, it has a domino effect on the other companies. They do it also and within a month or so, your credit score will fall 100 to 150 points through nothing that you did!
The example above is just one of many ways that the credit industry manipulates your credit score downward. And you’d think that they wouldn’t give you credit with a low score, right? Wrong. They are happy to give you credit at a much higher interest rate because of the lower credit score that they artificially created.
So what happens to your credit score when you file bankruptcy in Fort Lauderdale?
It will drop around 100 to 150 points upon filing a bankruptcy petition. But, it also does some good things for your future credit scores. A bankruptcy filing will put all of your credit card balances at zero. The debt to income ratio is another factor that affects your credit score so even though you are dropping because of a bankruptcy, in a few months, you will start rising again because of debt to income ratio and zero balances.
The reality is that most people that are considering bankruptcy already have a very low credit score and no chance of improving it in at least seven years because once the old debts are sold to debt collectors, they will continuously report it as new debt every time it changes hands. Your quickest road to credit recovery is truly through a bankruptcy filing. Just recently, a customer who filed a Chapter 13 bankruptcy called our office and she was crying tears of happiness and surprise. Her credit score was already up to 720 just 9 months after filing bankruptcy.
Three things to take away from her reaction to how fast her credit score went up after filing bankruptcy:
1) The credit industry programming was still in full force;
2) She wished she had done bankruptcy sooner (the stress of the debt had her in constant depression); and
3) Now that the debt was gone, she got out of her depression and has the energy and motivation to finish school and is on her way to a more fulfilling life and sense of accomplishment. She got her life back by getting rid of the debt collector calls, credit card harassment and the bad feelings she felt about herself by not addressing the credit problems.
Would you like to get your life back too?
Would you like to feel joy again and not dread picking up the phone to see who is calling?
You can do it! I promise you that.
We Love to Fight the Evil Credit Empire for YOU!
The Bankruptcy Law Firm of Orfelia Mayor is a debt relief agency in Broward County that loves what they do! We help people file for bankruptcy under the bankruptcy code. Make our day by letting us help you stop wage garnishment, stop foreclosure sales, stop car repos and just get you back into loving life! Your creditors have lawyers on their side – shouldn’t you have a lawyer too?
Contact us today for a no-charge, no-obligation bankruptcy consultation
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