Repairing Your Credit After Bankruptcy
So, you’ve done that hard part. You filed for bankruptcy and you have moved on. Now, you can start building a new credit reputation to will pay dividends in the future.
Here are some tips to improve your credit score after bankruptcy from Fresh Start Today:
- Carefully check your credit report. It is important to make sure that there are no mistakes in your credit reports. Then, you should continue to check it every six months or so. You will notice, as time goes by, that your bankruptcy items will start to fall off. If not, make sure that you follow through with any mistakes.
- If you notice any mistakes, deal with the credit company in writing. You should always send your information by certified mail and include your name, social security number, address, and date of birth. Don’t forget to include the information that is wrong. Make sure that you follow-through with your case, until it gets settled.
- Work hard to remove debt from your credit report. If you settle a debt and get it removed from your credit report, you will see an improvement in your score so it is very important to take care of all of your debts. Be sure to look closely through your credit reports and see if there is anything that you can do to make amends and fix any mistakes. It could make a big difference!
- Apply for several secured credit cards. Secured credit cards are designed to help you rebuild your credit. They work completely differently than a traditional credit card. You put money down as a deposit and then use them like debit cards. The more money that you are able to put down as a deposit, then the more money that shows you have as a “line of credit.” This will also help gradually increase your credit score.
- Once you have secured several credit cards, it is important that you use them wisely. Now that you have been able to get a few credit cards, you need to use them to be able to rebuild your credit. Use them several times a month, even for small purchases. However, it is very important that you are able to pay off your balance every month! Otherwise, your credit could take a turn in the wrong direction.
- Pay off your remaining debts on time. You should also pay more than the minimum amount (if possible) to show that you can be responsible with credit. This will help improve your credit score because they will report back to the credit reporting agencies that you are paying off your debt on time and responsibly. The faster you pay off your debt, the better your score will be.
- Know your limits. After emerging from bankruptcy, you don’t want to fall into old habits. Use your new credit cards sparingly to build up your credit. If you can’t pay off your balance at the end of the month, don’t buy it! If you have to, cut up some of your credit cards – that is much better than closing your accounts.
It can be hard to rebuild your credit after declaring bankruptcy but it is possible. Trust us, many have done it! However, you’ll need to put in the work. With the help of these tips, you should be on the road to rebuilding your credit in no time.
Carolyn Secor P.A. focuses its practice in the areas of Bankruptcy and Foreclosure Defense in Clearwater, Florida. For more information, go to our web site www.BankruptcyforTampa.com or call us today.