As a continuation of Repairing Your Credit after Bankruptcy (Part 1), here is some additional information regarding what borrowers can do to rebuild their credit ratings and improve their financial outlook after having filed for bankruptcy. Specific actions that borrowers can take to boost their credit score after bankruptcy include:
- Taking out one new credit card – Because bankruptcy will discharge a borrower’s credit card debts, after bankruptcy, borrowers will likely not have access to any lines of credit. Although opening up new credit cards can be dangerous if credit card debt was one of the main reasons that borrowers had to file bankruptcy in the first place, being careful with this new line of credit can help them slowly repair their credit rating. It’s essential to point out that borrowers who have recently filed for bankruptcy will likely have to put up some collateral in order to secure a new credit card and that these cards typically come with high interest rates.
- Pay off the balance of the credit card each month – In order to make a new line of credit work in a borrower’s favor, he should limit the types and amounts of purchases he makes on this new card and should only charge amounts that he knows he will be able to pay off entirely each month. Carrying a balance on credit cards is not good for anyone’s credit – let alone borrowers who have recently filed for bankruptcy.
- Regularly review credit reports – Once every six months to a year, borrowers who have filed for bankruptcy should request a free copy of their credit report from all of the three major credit reporting agencies, and they should carefully read through these reports to check for any potential errors or mistakes. Zeroing in on credit report mistakes can help borrowers fix their credit reports and ultimately avoid being penalized for errors they had no hand in creating.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.