A good credit score shows that you are a responsible borrower who clears the loan amount on time. A good credit score is important for certain types of loans, including home loans. Borrowers who have missed payments or a lot of outstanding debts have a poor credit score.
Bankruptcy is a legal process which helps a person or business come out of outstanding debts that they can’t pay. The process begins when the debtor files a petition or sometimes, creditors also file a petition.
Bad credit can be a burden for the rest of your life if you let it. Running up large credit card bills or failing to make payments on your loans can damage your credit score and make it difficult to borrow money when you need it.