Bankruptcy Lowers Credit Scores Whenever a person files for bankruptcy, their credit score will automatically get a 200-point deduction, and this greatly affects their chances of availing for different loans. If a person did not have a satisfactory credit score before bankruptcy, he or she will definitely have a tough time rebuilding their credit score, and rehabilitating their financial base within a reasonable period of time. By arranging for an automatic payment system for all your bills and loans, you won t need to scamper to the bank each time you forgot to pay the utility bill, or the credit card loan. Most creditors often set up an automatic payment system, which deducts a specified amount from your checking account. However, a person cannot simply wish to receive credit as they please, because they will need to apply for it, and most credit companies also take a closer look at a person s credit report, to see if they are truly credit-worthy, and know how to manage their finances well. Here are the five basic elements of a credit report. Stick To Your Budgets The best way for steering clear of mounting credit card debt, is by drafting a budget that s consistent with spending within your budget. While drafting this type of budget can be quite hard, once you re successful at formulating the right budget, it could help track down any unnecessary spending, and it will allow you to adjust your finances in order to spend for your real needs, and steer clear of unwanted debt. Incurring High Credit Card Balances Whenever a person incurs high balances in their credit cards, their credit scores go down hard too. The classic case of over-utilization of credit cards happens when the individual runs out their balance, or goes over their credit limits, and only pays the minimum amount each month to avoid further financial problems. How Lenders View Your Business Credit Score Most business creditors today expect their clients, or just about any other business entity, to have a Paydex account, as well as a business credit score. Most lenders take a close look at a company's business credit score, before considering to lend them any amount of money.