Bankruptcy Lawyer

Bankruptcy can wipe out most of your unsecured debts, giving you a financial fresh start. However, it can also lower your credit score in the process. You shouldn’t let this deter you from filing for bankruptcy though. Through time and effort, it’s possible to rebuild your credit after bankruptcy. Here’s how.

Pay Your Bills on Time

One of the simplest ways to repair your credit after bankruptcy is paying your bills on time each month. This includes your utility, credit card bills and car notes. If you have trouble remembering to make payments every month, consider setting up automatic payment. This way, you won’t have to worry about being late.

Keep Your Credit Card Balances Low

Credit card utilization is one of the factors used to determine your credit rating. Ideally, you want to keep your credit card utilization below 30 percent. If your utilization is too high, your creditors may consider you a high risk. Try to use your credit cards less frequently and pay off your balances every month.

Consider a Secured Credit Card

If you can’t get approved for a traditional credit card right after bankruptcy, don’t get discouraged. Consider getting a secured credit card, which requires you to make a cash deposit. If you make your payments on time every month, you can improve your credit score over time and eventually get approved for traditional credit cards.

Monitor Your Credit Report

After filing for bankruptcy, it’s a good idea to check your credit report from time to time. Make sure that all of your information is accurate and there are no errors. Checking your credit report regularly may also help you stay motivated to continue improving your credit.

Get a Co-signer

People who recently filed for bankruptcy may have trouble qualifying for various loans. If you’re in this situation, you may want to think about asking a close friend or family member to co-sign for you. A co-signer is someone who agrees to pay back a loan if the borrower fails to do so.

Ask to Be an Authorized User

If no one agrees to be a co-signer, you could ask to be an authorized user on someone else’s credit card. You will have a card in your name that’s attached to another person’s account. You can make purchases with the credit card. If you make the credit card payments on time, you may see your credit score improve.

If you have questions about bankruptcy, contact a bankruptcy lawyer, like one from the Law Offices of Neil Crane.