Because you ve settled with your former creditor for an amount less than what you actually owe them, the creditor eventually reports the remaining balance which you weren t able to pay, to the credit reporting agencies, and this will get noted in your credit report as a deficiency balance . If you have debts with former creditors, make sure that you work out a full settlement with them, and guarantee that what s accomplished between you and your creditor does not get reported elsewhere. If a person did not have a satisfactory credit score before bankruptcy, he or she will definitely have a tough time rebuilding their credit score, and rehabilitating their financial base within a reasonable period of time. But if you are confident of repairing your financial image , and you're confident of rebounding from your financial troubles, bankruptcy should not be a ghost that will keep haunting you for years, as long as you take concrete steps to change your wasteful financial habits, and improve your loan repayment capabilities. Always make it a point to make timely, as well as monthly, paytments to your lenders, so that your business credit profile remains active and maintains its high score. In addition, remember to keep your total debt ratio nothing more than 30%, since this will help lessen your businesses' overall debt exposure, and will ensure that you remain favorable in the eyes of prospective lenders. Non-Payment Of Apartment Rentals Defaulting on your apartment rental payments can also add to your credit rating woes. Your landlord can actually report that he or she has evicted you for defaulting on your apartment rent, and this would surely sne dshivers down most property management companies and mortgage lenders. Try to do a cluster of loan inquiries within a proper period of time, like one every two weeks, so that your credit score remains strong, and won't have to suffer major drops in credibility with lenders. According to credit experts, a credit score of 300 to 580 indicates that you'll only get approved for loans which offer very high interest rates. Also try opening a new credit card account; however, remember to keep your total revolving debt ratio to just 30% below your credit limit, so that you can rack up as much as 50 points to your credit score. Shop Around For Bad Credit Personal Loans The market for bad credit personal loans is on a high note these days.