Tuesday, November 29, 2016
Three Tips To Rebuild Credit After Bankruptcy
One of the most common concerns people who file bankruptcy have is how long their credit will be impacted by the filing. We all have financial needs and if your credit is not good, it is hard to get a loan at a good rate, or to enjoy reasonable auto insurance rates. It might even be difficult to rent a house or apartment if your credit has taken a hit, so the concern over how credit is impacted by filing for bankruptcy is understandable. You will be happy to know that you can rebuild your credit very quickly after filing bankruptcy, and it does not take a lot of effort.
Three tips to rebuilding credit after filing for bankruptcy include:
• Making payments on time. Bankruptcy will not eliminate all of your monthly obligations, especially for property you want to keep. Many people opt to keep their house and car when they file bankruptcy, and when this is the choice that is made the payments still have to be made. If you make these payments on time, your lenders will report you as an on time payer, and this data only serves to boost your credit score.
• Taking on small amounts of debt after your case, and paying them off quickly. You would be surprised at how quickly lenders will start sending you offers of credit. If you are confident you can repay a new loan, doing so is a good way to repair your credit after filing a bankruptcy case.
• Opening a secured credit card account is another way your credit will rebound after bankruptcy. Many banks and other lenders offer these types of cards, and if you pay them when due your credit will benefit.
The key here is to not take on debt you are not able to repay, and to take it slow. The worst thing that could happen is for you to get back into financial trouble right away, and undo all the hard work and effort you put forth in your bankruptcy case. For help getting back on solid financial footing, call us today. We can help you through the bankruptcy process, and give you advice on how to stay on track with your money after the dust settles.
For more information about how to rebuild your credit after bankruptcy, call us today or reach us online at www.law-ri.com. We will help by looking at the facts of your case and giving you options to reach your financial goals.