Looking for North Carolina Credit Repair? Bankruptcy Is a Fast Solution for Many Consumers Looking to Improve Their Credit

Submitted by Rachel R on Mon, 09/05/2016 - 10:07am

Looking for North Carolina Credit Repair? Bankruptcy Is a Fast Solution for Many Consumers Looking to Improve Their Credit

Bankruptcy can help fix bad credit

Image Source: Flickr User half alive - soo zzzz

Not only does having bad credit mean you can’t get approved for credit you want—like a car loan or mortgage—but it also means you’re paying more out of pocket for expenses tied to credit like car insurance and natural gas services. Here’s a quick look at the high cost of bad credit and how bankruptcy can be the surest means to North Carolina credit repair.

How Much is Bad Credit Costing You?

If you have good credit, you can get a car loan with 0-5% interest. With bad credit, your interest rate can be closer to 18% which is almost like financing a car purchase on a credit card. Double digit interest on a car loan can see you paying $10k in interest (or more) on a $25k car loan. It’s shocking.

Your car insurance cost can literally double if you have bad credit, even if you have a spotless driving record. Your natural gas costs can also double. Customers with bad credit often have to put down a sizable deposit and pay two times more than what those with good credit pay.

What is Credit Repair?

Many service providers offer “credit repair” services—some are law firms, some are not. Even those that are law firms cannot show a stunning track record of success. What these companies do, for starters, is try and get inaccurate items off your credit report. You can also do this yourself.

If some of your negative items are inaccurate, they will most likely be corrected rather than removed. So if you have a collection account showing a $2k balance when it should be $1k, they can change it, but it will stay in place. That won’t help your credit score.

Credit repair firms can’t remove negative items from your credit report that are accurate and haven’t aged out (i.e. are older than seven years). That means, even after you pay thousands of dollars to a “credit repair” agency, your credit score may improve by just a little—or none at all.

How Does Bankruptcy Work as a “Credit Repair” Solution?

When you read about bankruptcy, you may see some sites that claim it ruins your credit for 10 years. That is categorically untrue. Yes, bankruptcy will stay on your credit report for 10 years, but the longer it is after filing, the less impact it has on your score calculation.

Not only that, but filing bankruptcy, particularly Chapter 7, stops your bad credit freefall and gives you a fresh start. If you’re living paycheck to paycheck, maxed out on credit cards, and struggling to pay more than minimum balances, your credit is likely dropping every month.

Filing bankruptcy stops this immediately. It wipes out your credit card balances, stops all collection activity, and allows you the chance to start again. Your credit will take a hit from filing bankruptcy, but the lower your score is, the less filing Chapter 7 will impact your score.

How Bankruptcy Helps You Rebuild Credit

Within a few months of your bankruptcy discharge, you’re in a good place to start rebuilding your credit score. You can usually get a secured credit card within six months of your discharge and use that responsibly to re-establish credit before moving on to an unsecured card.

Many people find themselves with a much higher credit score one year after filing than they did before they filed bankruptcy. It’s a legal solution that is far more sweeping than any “credit repair” service, and when all is said and done, it costs you far less.

Even though you’ll pay court and attorney fees to file bankruptcy, you will get rid of credit card debt you can’t afford. This frees up a lot of your money, and you won’t be stuck with outrageous interest rates for future expenses once you rebuild your credit.

Find Out More Today

To discuss how to get out of debt with a North Carolina bankruptcy solution, contact the Law Offices of John T. Orcutt today. Call +1-919-646-2654 today for a free no-obligation consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.

Debts Hurt! Got debt? Need help? Get started below!

Serving North Carolina

  • Charlotte
  • Fayetteville
  • Durham
  • Wilson
  • Greensboro
  • South Raleigh (Garner)
  • Southport (Phone Consults)
  • Wilmington (Phone Consults)

North Raleigh

6616 Six Forks Rd Suite 203 Raleigh, NC 27615 North Carolina

Tel: (919) 847-9750

North Raleigh

Charlotte

7400 Carmel Executive Park Dr Suite 105 Charlotte, NC 28226 North Carolina

Tel: (704) 318-2702

Charlotte

Fayetteville

2711 Breezewood Ave. Fayetteville, NC 28303 North Carolina

Tel: (910) 323-2972

Fayetteville

Durham

1738 Hillandale Road Suite D Durham, NC 27705 North Carolina

Tel: (919) 286-1695

Durham

Wilson

2215 Nash St. NW Wilson, NC 27896 North Carolina

Tel: (252) 234-9194

Wilson

Greensboro

600 Green Valley Road Suite 210 Greensboro, NC 27408 North Carolina

Tel: (336) 542-5993

Greensboro

South Raleigh (Garner)

143 Highway 70 Garner, NC 27529 North Carolina

Tel: (919) 747-4400

South Raleigh (Garner)

Southport (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 218-8682

Southport (Phone Consults)

Wilmington (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 447-2987

Wilmington (Phone Consults)