Bankruptcy is a useful financial tool designed to help people facing insurmountable debts. Some individuals are hesitant to file, however, because they believe it will permanently ruin their credit. As any bankruptcy lawyer will tell you, while filing does show up on your credit report, it is possible to improve your rating. Find out how.
5 Ways to Improve Credit Following Bankruptcy
1. Check Your Credit Score
If you want to improve your credit rating, you need to know what you are starting with. While it might be intimidating at first, checking regularly will get inspiring with time, as you watch your score rise from month to month.
2. Get a Secured Credit Card
A secured credit card requires you to make an initial deposit equaling the value of the card’s limit. These are easier to get than normal credit cards, making them a smart way to start rebuilding credit after bankruptcy.
3. Look Into Retail Cards
Store and gasoline cards likewise have less stringent requirements than regular credit cards—and they can also boost your credit rating. Just pay off the full balance each month, as these have high interest rates.
4. Request a Co-Signed Loan
You probably won’t be able to get a bank loan immediately after filing for bankruptcy. However, you can ask a close friend or family member to co-sign a loan, and boost your rating by making regular timely payments. Late payments will also impact your co-signer’s credit rating, so don’t make this request lightly.
5. Create a Budget
Consistent, timely payments on loans, credit cards, and retail cards will steadily increase your credit score. Get help from a bankruptcy lawyer or financial advisor to create a budget, ensuring you can make these payments every month.
A bankruptcy lawyer can provide additional insights on how to regain your financial footing. For advice in southern Alabama, look to Padgett & Robertson, Attorneys at Law in Mobile. Known for trustworthy advice, they will give you the honest insights you deserve. An initial consultation including detailed financial analysis is free. Call the law office at (251) 342-0264 or use the online form to request an appointment with their bankruptcy lawyers.
No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.