Going through bankruptcy can give you a fresh financial start, but you’re going to have to rebuild your credit if you want to successfully apply for loans and lines of credit in the future. Fortunately, there are some good ways for those who have just gone through bankruptcy to pick up some better habits and raise that credit score. Here’s what our New City bankruptcy attorney would recommend.
What Can Help Me Build My Credit?
There are a few things that you can do to build your credit. You can:
Get a credit card: Obviously, this can be more difficult now that you have gone through bankruptcy. There will be fewer options available to you than to the typical consumer. Still, you should be able to qualify for something with a low limit or a secured card that’s backed up by your bank account. You could also become a registered user on someone else’s card.
Make on-time payments: Once you get a credit card through any means, make sure that those payments come in on time every month. Set up automatic payments if that’s an option and you won’t even have to worry about it. If you have any other loans or a mortgage, make those payments on time too.
Use a credit-building loan: Some loans are specifically designed to help you build up your credit score. If you have a big expense, think about using a loan to cover it. Then pay back that loan on time and watch your credit score rise.
How Can I Be More Responsible With My Credit and Finances?
Once you have gone through the bankruptcy process, give some serious thought to your financial future. Set some goals for yourself and also remember how difficult it was to go through life crippled by debt. Thinking about the positives of financial stability and freedom can help you make better decisions, like limiting impulse purchases, or tackle “boring” tasks like setting a budget.
How Long Can a Bankruptcy Follow Me Around?
A bankruptcy can stay on your record for up to 10 years. This can seem like a major inconvenience, but we do not recommend worrying about it too much. As the date of your bankruptcy filing gets farther away, it becomes a lot less relevant. A lender, landlord, or anyone else who looks into your history will see your bankruptcy from a few years ago, but it won’t be all that they see.
They can also see how you have handled yourself since then. Are you making payments on time? Are you overextended financially? Are your cards currently maxed out? If you practice good habits, your credit should be able to rebound from this.
Contact Our Law Firm
If you are considering filing for bankruptcy, contact the Lauterbach Law Firm. An experienced attorney can help you figure out if this is the right option for you. If it is, we can guide you through the process and help you get a new start. Schedule your consultation today.
