Most people fear bankruptcy because of the harm it does to their credit score. If you fear your credit score dropping, it is important to know that you can rebuild after.
According to My Fico, there are several ways that you can build up your credit score, no matter how you begin.
Reduce your debt
A lot of debtors figure moving credit around is as good as reducing debt. You do not want to move it around too much. Instead, you may want to consider paying your highest debts first and then focusing on the next highest once you pay one off. To improve your credit score, you want to have a low utilization ratio. You should not close unused credit cards either, as this can potentially lower your score.
Never miss a bill
Missing a bill is one of the biggest mistakes that a person can make. Late payments will impact your credit score. While you can build your credit score after missing a payment, you should make a point never to miss credit card payments or other bill payments. Even missing the date by a few days can hurt your credit.
If you let your accounts go to collections, then that will be on your credit report for seven years. If you have trouble remembering to pay your bills, consider using autopay or setting alarms to pay your bills before you miss the deadline.
If there are any errors on your credit report, you need to dispute them right away. Check all three credit reporting agencies for incorrect information. You can dispute the information by contacting the credit reporting agency.