Tips for Rebuilding Credit Post Bankruptcy
The choice to file for bankruptcy is not an easy decision. The legal process is not only complicated, but it can also be damaging to your credit. Fortunately, the impact on your credit report will lessen over time and will last for about seven to ten years, depending on the type of bankruptcy you’ve filed for. Charles Huber our bankruptcy attorney in Earth City, Mo, is here to help. In this article, we outline some of the steps you can follow to take back control of your finances and get you back on the right track after bankruptcy. Without further ado, let’s jump in.
Check your credit report regularly.
For a start, you should start by getting familiar with your credit report. In certain cases, you may realize that the debts that were supposed to be discharged are still listed. Therefore, it’s best to ensure that the balances are zero and labeled as discharged in bankruptcy. Report any errors you identify as soon as possible, as this may be the very reason that’s hindering your credit report from increasing. Credit reports are easily accessible, and you can get a free copy by visiting the Annual Credit Report website.
Demonstrate good payment history
Payment history is the most important factor when determining an individual’s credit score, accounting for 35% of the FICO Score calculation. So, making your payments on time is critical to rebuilding your credit score. To ensure you keep up with your payments, you can consider instructing your bank to institute a standing order and make the payments on your behalf.
Apply for a secured credit card
Applying for a secured credit card can be a valuable tool. It works a lot like a regular credit card, but you will have to make a deposit as collateral against the credit limit on the account. You can then borrow a percentage of that amount for credit. This is an excellent way of rebuilding your credit report, provided you stick to a good payment history since your activities will be reported to credit bureaus.
Create a savings account
If you can, it’s always a good idea to put some money aside in case of an emergency. In fact, regardless of whether you’ve filed for bankruptcy, having an emergency savings account is good financial practice. An emergency fund ensures that you are covered for unplanned expenses or financial emergencies such as car repairs, medical bills, or loss of income. This can help you avoid future debts.
Stick to a budget
Any efforts to rebuild your credit report are sure to fail if you can’t keep your spending at bay. A budget should outline exactly how much you need to cover all debts and expenses in general. Carefully budgeting will allow you to keep your spending on track and improve your financial health in general. Filing for bankruptcy might not erase a bad credit history, but it does give you the chance to make a fresh start. Keep a close eye on your CIBIL report, practice responsible credit habits, and make better financial decisions in general, and you can recover your credit report in no time.
Charles Huber Bankruptcy Attorney In Earth City Mo
Are you on the verge of bankruptcy? Our bankruptcy attorney in Earth City, Mo, can help you explore your options and determine if this is the right choice for your circumstances. If you are looking to rebuild your credit history, we can help with that too. Simply give us a call today for free no-obligating consultation.