It can often take very little to ruin your credit. By downloading all three credit reports, you may be able to start understanding the problem. Just one missed credit card payment, late mortgage payment, an automobile repossession, or bounced check can harm your credit. It is possible for your credit to stay bad for an extended period of time if you do not take action quickly.

If you choose to file bankruptcy protection, you can provide yourself with a fresh financial start and erase the debt you have. Your future credit can be saved by ending the aging of your delinquent bills. Once your debts have disappeared, you become a much better applicant for future credit because your debt to income ratio increases.