How to rebuild your credit score after bankruptcy is a question I get asked from just about all of my clients. It is one of the most important unanimous concerns clients seem to have going into bankruptcy and it should be. In fact, the toll filing bankruptcy can take on your credit score is probably one of the most common reasons why many people in Jacksonville, Florida look at bankruptcy as a very last resort and avoid it all costs. Unfortunately, most are falsely under the assumption they will not be able to use any credit for seven to ten years after filing bankruptcy. But this is not always the case. If you start taking steps to rebuild your credit score after your bankruptcy is concluded, you could have a great credit score in just one to two years.
Here are a few simple steps you can take to rebuild your credit score after bankruptcy quickly.
Secured v. Unsecured Credit Card: Get a credit card shortly after your bankruptcy is concluded. Use it for a few purchases each month, but pay it off in full and on time. To put it as simply as possible, do not carry a balance. You will receive several credit card solicitations in the mail, but you might want to do your own research first before applying for the first credit card application you receive in the mail. Many will have horrible interest rates with very high annual fees. Look into getting a secured credit card instead. They usually will have lower interest rates and some do not have any annual fees.
Pay everything on time: As already stated above, pay your credit card on time. However, it is important to pay EVERY bill on time. Not just your credit cards. Being late just one time or on one payment can negatively affect your credit score.
Limit the amount of credit you apply for: It can be very difficult to stay away from applying for a lot of new credit. But is it important to make sure you do not get over your head in debt again and end up where you were prior to filing bankruptcy. So be very picky and do your research before applying for new credit.
Create New Habits: Do not regret any past decisions you made, they cannot be changed, undone, or forgotten. So take them as a lesson, learn from them and move on. Figure out what old habits helped you fall into debt and do not repeat them.
Bottom line, it is very possible to rebuild your credit score after bankruptcy in a lot less time than seven or ten years. You just need to set goals and stay on track.
Contact the Law Office of David M. Goldman PLLC today to speak with an attorney today. Not only can an experienced Jacksonville Bankruptcy attorney help you through the bankruptcy process, they can also help you prepare for success after bankruptcy by helping you rebuild your credit score after bankruptcy.