After bankruptcy credit can be a huge concern for individuals who file. You may feel like your life will never be the same, you will not be able to get credit or you may worry about what you will do in an emergency. Luckily, it is possible to restore your credit by taking a tactical approach to your situation.
Rebuilding Credit After Bankruptcy
Like anything that is damaged, careful care is needed in repairing your credit after bankruptcy. Here are some tips that can help you get back to good financial health after bankruptcy:
- Get credit when you can, and use it. Living a cash only lifestyle after bankruptcy will not help with rebuilding your credit. You have to use credit to build your credit score. So whether you purchase a vehicle on loan or use a credit card and make payments in complete each month, use a little credit to start improving your credit score. The interest rate on credit cards and other loans will likely be higher after a bankruptcy, but you can either pay the credit card off each month, before interest accrues or you can pay loans of early.
- If you can keep just one credit card out of your bankruptcy, you may find life after filing easier. And, use of the credit card (as long as you make timely payments) can actually build your credit. Note though that creditors have the right to cancel your credit card or raise your interest rate with proper notification, and they may do so when they learn of your bankruptcy.
- Get your credit report from one of the agencies and make sure that all of the marks on it are accurate. You can sometimes contact creditors who have wrongly reported on your credit and ask them to report your accounts as settled, if they are. Your debts that were included in your bankruptcy should say that they were discharged in bankruptcy.
- Pay all of your debts on time. Whether they are credit card payments or other debts, late payments can show up as negative marks on your credit report.
Getting Legal Help
An attorney familiar with bankruptcy law can help you with your questions about your credit and bankruptcy. If you are considering filing bankruptcy, you will want to do everything possible to restore your credit after you file. An attorney can help you lay out a plan for starting a new financial future.
