Prepare Yourself For These Post-Bankruptcy Credit Issues
Posted on: 22 March 2019
Bankruptcy is meant to be a fresh start for those who've had no choice but to declare bankruptcy. While bankruptcy can impact your ability to get a home or car loan in the future, it doesn't have to be the end of credit use entirely. The below tips can help ensure that your bankruptcy filing gives you a second chance at using credit wisely.
Pay Your Bills
It sounds like common sense, but the importance of paying bills on time every single time helps in more ways than one. After a bankruptcy, you may have been fortunate enough to retain some of your property.
If you are still paying a mortgage or auto loan, you are lucky to keep the property and have a running start on improving your credit. It could take some time before you are issued any new credit but reaffirmed loans offer you a built-in opportunity to show that you can still make good decisions and pay your bills on time.
Consider a Secured Card
This type of credit card offers you a chance to rebuild your credit by starting off using your own money. It may sound strange, but you send them money, and then you use the card and make payments.
If you pay on time, your initial deposit is refunded at some point. Even though it's a secured card, it is still reported to the credit agencies as a credit card. Be sure to use a reputable credit card company.
Take It Slow
As time goes by, you will receive credit offers. If you have never taken the time to read the small print on the back of a credit card offer, now is the time. You may be shocked at membership fees totaling hundreds of dollars a year and super high interest rates.
Often, you might also note monthly "service charges" that are charged whether you use your card or not. Know what you are doing when you apply for and use credit, regardless of its source. Use only one or two cards as you work to rebuild your credit.
Watch Your Numbers
Periodically (perhaps once a month or so), check your credit score so that you can address issues early on. You can use a free site as often as you like. Be sure to take note of any sudden dips in a score. You want to make sure that the accounts listed on your bankruptcy are showing as "closed" and not open and that any new inquiries are kept to a minimum.
You can and will rebuild your credit after bankruptcy so talk to an attorney who offers bankruptcy law services today about how you can make your own fresh start.
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