It tells prospective creditors that you re unable to honor your promise to pay back your debts and other financial obligations, from utility bills, credit card charges, child support and more. Although it may take a while for a person to rehabilitate his credit score after bankruptcy, the impact of the bankruptcy though dissipates over time. How To Improve Your Credit Score According to credit experts, there are a lot of methods for improving your credit score. Among the strategies include making sure that you pay your bills on time. If ever you missed some payments in the past, do all you can to pay your current bills on time. Also remember to keep your outstanding debt to as low as you can, and it would be better to pay the debt off, rather than simply move or transfer it around. Insurance premiums for people who've experienced bankruptcy are also more costly than for people who have stable financial records. A person who's experienced bankruptcy will also be classified as a high-risk customer, hence the rejection of his or her loan application. Before you file for bankruptcy, remember that bankruptcy is not an easy way out of your financial mess, because it will have serious implications on your credit record, and will also seriously hamper your business dealings with other people. By immediately finding out any numerical or typographical errors, this allows you to quickly file disputes to correct any inaccuracies. Aside from alerting you of any fraudulent activity or inconsistencies, a credit monitoring service can also help you effectively manage your credit. The Downsides of A Credit Monitoring Service - According to credit experts, it s quite impossible for each company to effectively monitor each of their client s credit report on an hourly basis. How Too Many Inquiries Can Damage Your Credit Score Each time someones looks at your credit report, an inquiry is often noted. However, if a lot of inquiries are made, you could appear to be shopping or looking around for different loans at once. This may also indicate that you've been rejected by a number of creditors, which could make you appear as a poor credit risk. Late Credit Card Payments and Large Balances Late credit card payments not only burden you with additional surcharges and fees, but it can also put a black eye on your credit history. According to credit report experts, poor payment history accounts for 35% of your total credit score, and even a single late payment can quikcly chop-off 100 points from your score.