Bankruptcy is designed to help people out of insurmountable debt. Unfortunately, many people who could benefit from this useful financial tool are afraid to even consult a bankruptcy attorney because they’re worried about what a filing will do to their credit score. However, while your rating will take an initial hit, many debtors in a short period of time see their credit scores drastically improve because their debt has been discharged.  In most cases, bankruptcy helps to rebuild credit faster! 

5 Ways to Improve Your Credit After Bankruptcy Assistance 

1. Check Your Score

To better your score, you first need to know where you are now, so check your credit after filing.You can get a free annual credit report online. This starting point will ultimately motivate you as you see your score improve.

2. Make a Budget

After consulting a bankruptcy attorney, you must avoid getting into new debt. Make a monthly budget covering all of the essentials, avoid buying unnecessary items, and pay your bills as soon as you receive them.

3. Create an Emergency Fund

From a broken phone to car repairs, some emergencies require fast cash. Incorporate savings into your budget to account for them. Even just $50 per paycheck will add up to a few hundred quickly.

4. Get a Secured Credit Card

A secured card requires you to put up a deposit to back your line of credit. Get one of these to boost your score until you become eligible for a regular card. Use it regularly, and always pay the minimum amount on time.

5. Obtain a Loan

Diversifying the type of debt you carry will improve your credit. Take out a small loan you can pay back easily. If you don‘t qualify for a loan yet, ask a trusted friend or relative to co-sign for you.

Greg Dunn, Bankruptcy and Debt Relief Attorney of Honolulu, HI, has over 20 years of experience helping Oahu residents get back on their feet financially. This bankruptcy attorney knows how stressful debt is and will provide the compassionate, clear communication you need during this time. With his in-depth knowledge and efficient guidance, you will get the peace of mind you want, as online testimonials from his former clients show. To meet the bankruptcy attorney in person, call (808) 524-4529.