A high credit score can give people opportunities they wouldn’t otherwise have. They can purchase homes and cars with low interest rates and may even pay less for insurance. It isn’t hard to get a high credit score but it can be hard to maintain it, especially for those who owe more than their income. In some cases, this might mean a call to a trusted bankruptcy lawyer in Bowie, MD is in order.
Recent changes to the law require credit card companies to inform customers of the number of months it will take for them to pay off the balance if they only make the minimum payment. There are a few ways a person with a high credit score could become a bad credit risk in a matter of months.
Late Payments
In order to maintain a high credit score and get access to low interest rates, customers must make their payments on time. Late and missed payments could be devastating to a person’s credit score. Credit bureaus keep data for years. A missed payment may lose its impact over time, but too many of them in a short period of time can cause a person’s score to drop dramatically and it will be challenging to recover from a dip like that. If a person is making their payments late because they can’t afford to pay the debt and are using payday loan services to pay their minimum amounts due, it might be time to get in touch with a bankruptcy lawyer in Bowie, MD.
Inquires
Too many credit applications in a short period of time can also negatively affect a person’s credit score. This tends to happen when people get overextended and need a new credit card or consolidation loan to get back on track. Unfortunately, with too many inquiries, it might be difficult to get that new credit. A bankruptcy lawyer in Bowie, MD might be able to help a client resolve their problem without taking on new debt.
People who are unable to pay their bills shouldn’t wait to talk to an attorney and learn about their options. website offers information and a way to get in touch with an attorney that might be able to help them resolve their financial woes.