Keep in mind, when shopping for a mortgage or car loan, it's permissible to have multiple inquiries for the same purpose within a 30- to 45-day period, without those multiple inquiries hurting your credit score. In this situation, the multiple inquiries will be counted as one single inquiry.
Strategy 8: Avoid Bankruptcy, if Possible. There are a lot of misconceptions about the pros and cons of filing for bankruptcy if you encounter serious financial problems. In terms of your credit report and credit score, filing for bankruptcy is one of the absolute worst things you can do. If your credit score hasn't already plummeted as a result of late payments, missed payments, and defaults, when the bankruptcy is listed on your credit report, you will notice a large and immediate drop in your credit score. Furthermore, that bankruptcy will continue to plague your credit report for up to ten years.
For most people, bankruptcy does not offer an easy way out of their financial responsibilities or offer a quick fix. Instead, you're setting yourself up for long-term financial difficulties, because obtaining any type of credit or loans in the future will be significantly more difficult. Many mortgage brokers (and lenders) and car loan financing companies will automatically reject applicants with bankruptcies listed on their credit reports.
If you do file for bankruptcy, the best thing you can do is slowly rebuild your credit by paying all of your bills on time from that point forward, with no exceptions. Rebuilding your credit in this situation will mostly likely take years, with no quick fixes available.
