Your credit score can play a role in many different aspects of your life. A good—or not so good—credit score can play a significant role in determining where you live, what kind of car you drive, where you go to school, or even where you work. Credit scores are regularly used to make decisions regarding the following:
 
 

• Student loans and financial aid
• Approval for auto loans, mortgage, loans, and credit cards
• Interest rates on auto loans, mortgages, loans, and credit cards
• Approval of rental applications
• Hiring decisions (though this will soon be banned in some parts of New York based on a new law)¹
• Opening checking or other bank accounts

Many different factors can destroy a credit score if you are struggling financially. For example, if you fall behind on your credit payments, every late payment will lower your score. Some people use multiple credit cards and repeatedly max them out trying to pay their bills on time. While this will work to avoid late payments on your credit report, maxing out your credit cards can significantly lower your score, as well. Many people do not realize that having high utilization² of your overall revolving credit is a detriment to your credit score just like past due payments or defaults.
You may put off considering bankruptcy as a solution because you believe that bankruptcy will hurt your credit score even more. However, while bankruptcy does affect your score initially, by discharging all of your unsecured debts it is likely to improve your credit in the long run. For this reason, you should never hesitate to discuss your situation with a bankruptcy attorney.
Contact an experienced Long Island bankruptcy lawyer for a free consultation
If you are considering filing for bankruptcy but are concerned about the effect it will have on your credit score, experienced bankruptcy attorney Ronald D. Weiss can evaluate your financial situation and advise you on your best options. In many cases, bankruptcy can greatly improve your control over your finances and credit score, so please call our Long Island office at 631-302-5949 for a free consultation to discuss how we can help you.
References:
¹http://www.nytimes.com/2015/04/17/nyregion/new-york-city-council-votes-to-restrict-credit-checks-in-hiring.html?_r=0
²http://www.investopedia.com/terms/c/credit-utilization-rate.asp