Filing for bankruptcy can seem like a straightforward process when you have hired debt relief attorneys at Corpus Christi for help. Once done, you are left with a clean financial slate but a long and complex journey toward achieving financial stability.
Bankruptcy often causes a significant hit to your credit score. However, rebuilding it is not complicated when you employ the right management strategies. In this guide, we will review these in detail to help you get your credit back up post-bankruptcy.
Tips for Rebuilding Credit
1. Apply for a Secured Credit Card
Regardless of your bankruptcy history or poor credit score, you can still apply and receive a secured credit card. This is a beneficial option because it allows you to build trustworthiness in front of lenders.
You will need to make a refundable cash deposit to receive the card. This amount will typically match your credit line. Once you make consistent and on-time payments on your unsecured credit card bills, you can eventually move on to a traditional credit card.
2. Get a Co-Signer
Post-bankruptcy is a good time to apply for a loan, especially if you are planning to make a big purchase, such as a house or car. A long-term loan you pay off regularly will help lengthen your credit history and improve your credit score.
However, you might struggle to qualify for loans due to your financial history. In such cases, having a co-signer who has a high income and an excellent credit history can help you secure a loan. As a co-signer, they agree to pay the loan payments if you default. For this reason, it is also hard to find someone who would co-sign with you.
3. Monitor and Analyze Your Credit Report
If you are looking to rebuild your credit score, you must first familiarize yourself with your credit report and constantly monitor it. This will help you understand what is causing your credit score to decline or improve. Additionally, monitoring your report will help you understand what works to increase your credit score and what doesn’t.
There are multiple online resources that you can use to check and monitor your credit scores and report for free. You will also stay motivated when you regularly check your credit score and monitor any changes in them.
4. Practice Good Credit Building Habits
Above all, a top tip for rebuilding credit is to practice habits that will protect and improve your credit score. These include making on-time bill payments and not defaulting on them, reducing your usage and dependency on your credit card, keeping all your credit balances low by consistently paying credit card bills, and saving every month in an emergency fund.
Final Word on Rebuilding Credit Post-Bankruptcy
The road to rebuilding your credit score after filing for Chapter 7 bankruptcy is long and arduous. However, you can make it easy for yourself by hiring professionals like debt relief attorneys at Corpus Christi. We are the leading debt relief law firm in TX that helps our clients protect their rights and find relief from bankruptcy.
We will work tirelessly to defend your case. For more information, visit our website today to learn more about bankruptcy attorney Corpus Christi
