Rebuilding Credit Post-Bankruptcy
Bankruptcy offers a huge relief for those dealing with massive amounts of debt. While bankruptcy has allowed you to wipe the slate clean, a lower credit is the price that is paid. If your credit was not in good shape before your filing for bankruptcy then it is imperative to rebuild it as soon as possible.
If you are lucky enough to have kept your home post-bankruptcy. Paying your mortgage on time can actually help you increase your credit score.
Paying your bills on time is also important. This shows your lenders that you have learned from previous fiscal mistakes and are making the effort to not fall into your old habits.
Once you are on a better financial track, look into a credit card. While you may not qualify for an unsecured card, credit card companies may be open to giving you a secured card. A secured card works by depositing money with a bank in order to use a credit card. The limit on the card is usually the same amount deposited in the bank. You have to pay back the amount you spend every month but once the card becomes unsecured, you get your deposit back.
Creditors will not see the card as a secured card but as a regular credit card which means it helps you rebuild your credit.
For more information or assistance with your bankruptcy case, residents of Sacramento can look to Liviakis Law Firm. Contact us at 916.459.2364 for your free consultation.