What steps can I take to rebuild my credit after a Chapter 7 bankruptcy?
If you are considering filing for Chapter 7 bankruptcy, but concerned about your credit score, we have good news for you—by taking some simple steps, you can start rebuilding your credit immediately after declaring bankruptcy. You can rapidly return your credit score to its pre-bankruptcy level, and build even stronger credit than before. Chances are, if you are researching bankruptcy, your credit score may already be suffering. Late bill payments, non-payments, and foreclosures or repossessions can have a significant impact on your credit score. While declaring bankruptcy will further damage your score in the short-term, it may the tool you need to eliminate your debt and begin building strong credit.
Start Rebuilding Your Credit Right Away
A bankruptcy will remain on your credit report for up to ten years, but there is no reason to wait this long to repair your credit. Follow these steps and consult with your Miami Valley, Ohio Chapter 7 bankruptcy attorney to start on the path to positive credit:
- Check your credit report: You will first need to have a thorough understanding of where your credit stands before you can start rebuilding it. Several of the major credit reporting agencies offer free annual credit reports. Download these reports and review them for accuracy. If errors exist, contact all credit reporting agencies.
- Make a budget and stick to it: You will want to make a realistic budget and stay on track with it. Pay all of your bills on time, each and every time. Place due date reminders on your calendar and set bills up for autopay to ensure timely payments.
- Apply for credit, carefully: You may be hesitant to take out a credit card or take on debt after declaring bankruptcy, but a crucial component to rebuilding your credit will be building positive credit. You can start with a low limit credit card, and you may need to apply for a secured card. Pay off the full balance when you can and do not amass significant debt. In time, you may wish to obtain a loan and similarly take care to timely repay it. Go slow and be sure not to repeat past mistakes.
These are just a few of the many ways to rebuild your credit after a Chapter 7 bankruptcy. Your bankruptcy attorney can assist you in this vital step in your path towards financial freedom and security.