Filing for bankruptcy will undeniably have a great impact on
your credit but sometimes it becomes the only option. It is important to
evaluate the budgeting and financial mistakes that helped lead you to this
direction. While we realize you didn’t get there on purpose you should self
examine your spending habits and start working on ways to rebuild your
credit. Yes you heard us right; you can still work on rebuilding your credit
even AFTER filing a bankruptcy. But, it will take time and perseverance on
your part.
Below are some tips to help
you reestablish your credit after filing for bankruptcy.
1. Learn to live within your financial means. Spend your money wisely and do
not buy luxury items that are not a necessity for living! This is an
important lesson to learn and it will be hard to talk yourself out of some
of those luxury purchases but you will thank yourself later.
2. Apply for a secured credit card and be sure to repay on time! This will
reflect positively on your credit report and help you to start a new and on
time paying credit history. Try not to jump right back in and get a card
with a high deposit amount, start out small and progress forward.
3. Open a new checking and/or savings account. Lenders will take this into
consideration when determining if you are responsible enough to lend money
too.
4. This one can be trick, but see if you have a friend or relative that will
cosign on a credit card or small loan with you and then be sure to make all
the payments on time. This will help to reestablish good credit and an on
time payment history.
5. When applying for new credit, try to start with a gas card or store
credit card – these are items you would normally pay for in cash but now you
can pay the bill monthly to reestablish credit. This may be a wise choice as
to not give yourself extra credit on items you may not need right now!
6. Payday loans should always be a last resort and avoided at all costs if
at all possible! The interest rates are extremely high and they can easily
become a bad credit trap after all your hard work.
7. Lastly, pay all your credit card and utility bills on time!
These few small tips will help you to reestablish your credit history after
surviving your bankruptcy. Don’t give up hope, it is possible but it will
take time, effort and a lot of hard work and determination.
About the Author
Sam Argon is a retired banker who loves to
contribute to financial message boards in his spare time. In addition, Sam
has written information about a website offering information and resources
for people who are thinking about declaring bankruptcy.
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