Filing for bankruptcy can help you get a fresh financial start. However, your credit score can take a hit. Your credit score can be affected after filing bankruptcy, but this will only be temporary.
Lenders may not want to work with you, and you will often face higher interest rates when you do qualify for a loan. What can you do now to help your credit score? Keep reading to learn about what steps to take to help you now and in the future.
You need to re-establish your credit after bankruptcy. If you have recently filed for bankruptcy or just need help improving your credit score, think about taking the following steps:
- Create a budget and stick to it.
- Use cash as your primary method of payment.
- Pay your bills on time.
- Review your credit report and make sure it is accurate.
- Get a credit card to establish a good credit history.
- Be aware of scams to “fix” your credit after bankruptcy.
Your credit score will impact all aspects of your life. It is important to understand what steps to take to help you rebuild your credit score so you can achieve your financial goals.
Remember that it takes time to rebuild your credit score. Waiting to see your credit score improve can be difficult but it is necessary. As your credit report improves, you will be able to achieve more of your goals as well as know what it takes to keep your credit score from plummeting.
An attorney can help you understand your options when it comes to life after bankruptcy or if you need advice about improving your credit score.
Source: Bankrate, “10 ways to bounce back from bankruptcy,” Accessed Nov. 6, 2015
