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Bankruptcy is a consequence of financial distresses like job losses, business losses, loss of wealth. Bankruptcy impacts one's credit score immensely, generally the credit score also drops by 100-200 points or even more depending on case to case basis.
The bankruptcy record once it is marked stays on the credit report of an individual for 7-10 years. This hence makes it difficult to secure personal loans or get credit in the future.
Still, rebuilding one's credit score is achievable with sincere discipline. All one needs to do is to follow a systematic approach in a strategic way.
You need to repay your personal loans EMIs carefully along with ensuring that you don't skip any of the payment dates.
It is important to understand that a credit score is determined by credit bureaus such as CRIF High Mark based on credit history and repayment behavior. Following are some important points to keep in mind to try to rebuild your credit score:
One should obtain his or her free annual credit report to identify the shortcomings and errors impacting the score. This can give insights on ways one can improve his or her credit score.
If you are facing a difficult credit situation try to understand your mistakes. Consider talking to registered finance professionals. A simple example can be SEBI registered investment advisors.
It is also important to avoid committing the past mistakes again. Focus on fixing your credit independently. Never fall for any credit repair service to fix your credit score.
Therefore, these are some of the steps that one can take to ensure that he or she is able to rebuild his or her credit score after falling into bankruptcy. It is a given that the process of improving your credit profile after bankruptcy is long, still with devotion and sincere hard work things are bound to improve.
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