Falling on hard times and filing for bankruptcy doesn’t mean your credit score is irreparable. While the bankruptcy process can take a toll on your credit, there are steps you can take to build your score back up, allowing you to eventually get lines of credit in your name and even purchase a car or home. After serving as top bankruptcy lawyers in Myrtle Beach, we’ve developed these steps in helping clients rebuild their financial futures.
Get in the habit of going through your credit report with a fine-tooth comb every six months. Know when to expect the bankruptcy items to fall off your report, and follow up with a creditor immediately. if something doesn’t look right. Over time, you will see your credit score start to climb.
If you do notice a mistake on your credit report, make any requests for changes in writing. Within your request, be sure to include your name, social security number, and the problem you have with the creditor’s mark on your report. Send the documents through certified mail so you have proof of delivery. Continue to follow-up until your case is resolved.
Settling your debt and working out a payment plan is just half the battle. Begin paying off the creditors, making each payment on time. As you pay off your debt, your credit score will grow. Be attentive to the creditor’s notes on your report; they should be documenting your timely payments.
Secured credit cards work very differently than traditional cards. With secured credit cards, you are essentially paying ahead of time, and using the card as a debit. These cards are designed to help rebuild credit scores. The amount of money you put down on the card is recorded as a line of credit. You then use the card to make purchases and continue to refill the card as cash decreases. Your consistent responsible use of the card will improve your credit score.
Just because you’re working toward a better financial future, it’s not the time to call up all your credit card issuers and close your accounts. Closing lines of credit will only slash your score more, so cut up the cards if you’re trying to avoid using them, but leave the accounts open.
As bankruptcy attorneys, we’ve seen instances where people file bankruptcy and over time resort back to old financial habits – landing them back in the same predicament. Use the time you take to rebuild your credit score after bankruptcy as an opportunity to develop new money spending and saving practices. Don’t apply for too many credit cards or loans, set money aside for future needs, and keep track of your spending.
It’s difficult to rebuild your credit score after bankruptcy, but it’s not impossible. Be diligent in paying off debt and continuously monitor your report for inaccuracies. You’ll begin to see a change in your score as you take control of your finances.
If you have questions about filing for bankruptcy, please do not hesitate to call our team of Myrtle Beach bankruptcy lawyers. We are experienced in helping people get back on financial track.