So often, our bankruptcy clients tell us “I’m never going to have credit cards or borrow money again!” believing that having good credit is not relevant to them if they do not plan to buy a home or get a personal loan.
There are many reasons besides homeownership or personal lending that you should consider when you weigh the significance of having good credit and move on with life after bankruptcy. Here are some reasons why your credit score matters more than you may think.
Getting a job
Employers commonly conduct credit checks as a part of their hiring process. Prospective employers could interpret bad credit as a sign of disorganization. They could interpret many outstanding accounts in collection as an indication of untrustworthiness.
Applying for an apartment
It is likely that a landlord or management company will do a credit check before accepting your application for tenancy. A poor credit score may make you lose out on an apartment that you really want.
Starting a business
A new business venture may need a small business loan or capital investment to get off the ground. Lending institutions and investors could view the principal’s problematic credit history as a red flag.
Ultimately, failing to take action to rebuild your credit after bankruptcy can have repercussions that affect many different areas of your life. It can bar access to many different types of opportunities and prevent you from achieving your goals. Building your credit may take some time, but it is well worth the effort.