Debts are not directly related to mortgage payments

These debts are not directly related to mortgage payments. Owing money to be able to settle your medical bills, or save a drowning business can lead to bankruptcy. If ever there is a foreclosure, the extent of liability will rely on the type of mortgage-recourse or non-recourse. To be able to opt for non-recourse loans, the borrower is not responsible to pay the dues using personal property other than the house which serves as the collateral for the loan. When you will file for bankruptcy through Chapter 7, your debt responsibilities are still there. In fact, your Investment Retirement Account can be utilized to pay off your dues.

Apply for an unsecured card to improve credit score

You may want to apply for an unsecured card to improve credit score. However, the balance limit may be small and there may be a yearly fee. Get the card, pay the annual fee, and you will see. For the next three to four months, charge small amounts using this card and then pay the balance off when your bill arrives. This will place another trade-line on your credit report score; this will show your entire balance payment each month. This can improve credit score by, again, as much as 40 points over a period of four to six months.

With a 720 Credit Score, you will save money.

First, let's look at the cost of having a low credit score due to a bankruptcy or foreclosure.

According to my www.MyFico.com (February 13, 2009), the difference between a 720 credit score and a credit score of 659 for a car loan interest rate is 5.516%!!!

Why is a 720 Credit Score so important? Here's why.

With a 720 Credit Score, you will save money.

First, let's look at the cost of having a low credit score due to a bankruptcy or foreclosure. According to my www.MyFico.com (February 13, 2009), the difference between a 720 credit score and a credit score of 659 for a car loan interest rate is 5.516%!!!