Most of our Escondido readers know that one of the most important things to do in the wake of a bankruptcy filing is to begin working on rebuilding credit - and possibly even improving it. Previous posts here have made it clear that the common belief that a person will have to deal with poor credit for a period of time after a bankruptcy filing is not a myth. However, that doesn't mean that the road to recovery is impossible.
A person's credit is most often associated with what is known as their credit score. This is a number based on a wide variety of factors, but, simply stated, the higher the number the better the score. As a recent article noted, a credit score can range anywhere from 300 to 850. So, just how high does a person's credit score need to be to be considered good?
The recent report noted that, while there isn't an exact threshold that needs to be crossed in order to put a person in the good range, when pressed many financial experts state that a number of 760 or higher is usually where a person should want their credit score to be. But, it is important for our Escondido readers to realize that the credit score can fluctuate somewhat from month to month - an exact number isn't the key point.
The good news is that this number scale can give a person a good idea of how well they are recovering - financially speaking - after filing for bankruptcy. A bankruptcy filing can wipe the slate clean on debt, which can then give the filer the freedom to rebuild a credit score.
Source: USA Today, "Take these steps to improve your credit score," Jeff Reeves, May 16, 2015