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Know your credit score and save yourself from bankruptcy

People often forget to keep a track of their credit score. It can land them into trouble. If you wish to keep yourself away from deepening debt, you should have a clear idea about your FICO score. Late or skipped payments can slip the scores down and you might be unintentionally oblivious of such decrement. Only your credit score will be evaluated by a landlord, bank or insurance company. Credit scores determine if you are a low-value or high-value customer. If your credit scores have slipped drastically to less than 500, you will need to file for bankruptcy and hence prior vigilance is inevitable.

An ideal score has to be above 700. The financial choices you make influence your credit scores. You need to order your credit report from Equifax, Experian, or Transunion. Don’t forget to examine with careful scrutiny. A better credit score will encourage sagacious financial decisions, and in fact, can save your thousands of dollars in interest rates. Regular payment of installments for debt or other expenses and maintaining the limit to 30% of credit remains the top recommendation.

Being updated with your credit score would not just save bankruptcy in the longer term, but also simultaneously help you in reporting cases of identity theft or discrepancies in financial information. It also induces a sense of responsibility such that you would work harder over personal financial management. Even if in the worst circumstances if you are filing for bankruptcy, there are potential methods to rebuild the entire credit history.

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