Even the most financially disciplined people can fall behind on their debts, whether due to a job loss, unexpected expense, or medical emergency. If you can’t keep up with your financial obligations, filing bankruptcy can discharge your debts and give you a chance to start rebuilding your credit. Here are a few tips for reestablishing your reputation and getting your finances back on track.

4 Tips for Rebuilding Credit After a Bankruptcy

1. Check Your Credit Report

Errors on credit reports are surprisingly common, and some could continue to drag your score down even after bankruptcy. Two to three months after your bankruptcy case, request a free copy of your report from each of the major credit bureaus, and check to ensure your creditors reported the discharge of your debts. Report any mistakes to the reporting bureaus and the lenders as quickly as possible.

2. Make On-Time Payments

A history of on-time payments is one of the most important factors determining your credit score. If you have any debts that were not included in the bankruptcy, make your payments on time every month.

3. Apply for New Credit Carefully

Within a few months of filing bankruptcy, you may be able to qualify for store charge accounts or secured credit cards from specialized lenders. However, carefully read all documentation before accepting any credit card, as these products often have annual fees, high interest rates, or monthly minimum payments.

4. Don’t Carry Balances

Once you’ve acquired new credit, using it carefully is key to establishing a reliable credit history. Paying off your balance every month will not only boost your credit score, but it will also save you hundreds of dollars every year in interest and other fees.
 

If you’re considering filing bankruptcy, hiring an attorney can reduce stress, eliminate mistakes, and make the process as seamless as possible. The Law Office of James B. Mallory III has been solving money problems for Statesville, NC, borrowers for over 28 years, and will provide the personalized attention you need. Visit their website for more on what to do after filing bankruptcy, or call (704) 872-1911 to arrange a consultation with a skilled attorney today.