How to Rebuild Your Credit Score After Bankruptcy

Rebuilding credit is one of the most important and unanimous concerns our clients seem to have going into the bankruptcy process. In fact, the toll filing bankruptcy can take on your credit score is probably one of the most common reasons why many people in Bay County, Florida look at bankruptcy as a very last resort and try to avoid it.

Unfortunately, many people are under the false assumption that they will not be able to use any credit for seven to ten years after the bankruptcy is filed. This is not the case. If you start taking proactive steps to rebuild your credit score after your bankruptcy is concluded, you can begin building your credit score back as soon as your case is finished. Many people find that within 24 months, their score is better than it has ever been. 

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 always pay it off in full and before the due date. To put it as simply as possible, do not carry a balance. You will most likely receive several credit card solicitations in the mail, but try and do your own research first before applying for the first credit card application offer you receive. Many of those offers will have high-interest rates with extremely high annual fees. It may be a good idea to look into getting a secured credit card instead of a traditional credit card. Secured lines of credit usually will have lower interest rates and some do not have any annual fees. Remember, this first card is not about the benefits and perks the card can give you, it is about the great benefit that it is

Make Payments on Time:

As stated before, always pay your credit card off on time. However, it is important to pay EVERY bill on time. Not just your credit cards. Being late just once or on a single payment can have a negative effect on 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 it is 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 diligent and do your research before applying for new credit.

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, stay on track, and work with an experienced and professional bankruptcy attorney to help guide you through the process.