Bankruptcy is a sign of failure for many people. They may think that they are doomed for life, unable to get a car loan, own a home or even get that dream job because of their now-damaged credit history. A bankruptcy will lower your credit score, but if you made the decision to file for bankruptcy, then it is very likely that your score was low in the first place.
This means that, for some people, bankruptcy can be a blessing. It will relieve you of credit card debt. You can now spend your hard-earned money paying day-to-day expenses or use it to save up for a car or home in the future. However, just because bankruptcy has happened once, doesn’t mean it won’t happen again. You will need to take some steps to keep your finances in order and get your credit score in the upward direction.
Pay Bills on Time
This may seem like a no-brainer, but failing to do this is probably what got you bankrupt in the first place. Make sure that you set up reminders to pay bills every month. Some companies even allow you to set up auto-payment, so you don’t have to remember a thing. Even a payment that’s one minute late can result in late fees an increased interest rates.
Apply for a Credit Card
This may be a shocker to those who just went through a bankruptcy. They just dissolved all their credit card debts through bankruptcy and now they should go out and get a new card? Yes, and here’s why. You need to rebuild your credit and ironically, you can’t do that if you have no credit history. With a bankruptcy, you’re basically starting over, so you need to build it back up. It may be hard to find a card with low interest rates or no fees, so choose one that has a low credit limit and just pay it off every month.
It’ll take some time before you see some major improvements to your credit score. Don’t expect overnight success. Show creditors that you are striving to be responsible with credit and after a few years, you may see some major progress.
Filing for bankruptcy is never an easy decision. Let us help you gain control of your life. We can help you choose the option that’s right for you. Book a free consultation and let our friendly staff guide you through the process. Call us at 1-866-702-9801 to learn more.