The pressure of insurmountable debt is enormous and so too is the sense of relief that you feel after moving forward with a bankruptcy filing. It’s perfectly normal. But that feeling of having a great weight lifted off of your shoulders is quickly followed by the realization that you are back to square one — actually below square one — when it comes to your credit rating.  Though it can take time, and the bankruptcy filing will remain on your credit history for several years, there are several steps you can take to start rebuilding your financial health and improving your credit score. Here are our top recommendations.

  • If you have accounts that were not discharged in the bankruptcy, make sure that you continue to pay down their balances, providing at least the minimum each month, and a bit more if you can.
  • If possible, establish (or continue) a stable job history, staying with a single employer for a minimum of two years.
  • Though you may find it difficult to establish new credit via traditional routes, opening a secured credit card or a credit builder loan and then paying your debts quickly will help prove that you have learned money management skills and are creditworthy. Gas company cards, retail store cards, and others that are easier to qualify for will help too.
  • Ask a family member or trusted friend whether they will cosign your loans or contracts. Doing so provides lenders with greater confidence and willingness to provide you with a loan and gives you the opportunity to establish a better credit rating.
  • Minimize the number of credit applications you submit, as frequent applications trigger hard inquiries that lenders view as a negative.
  • Once you have obtained new credit opportunities, use them sparingly but regularly, and make sure that you pay them off promptly. Working to keep your balances low is important.
  • Periodically check your credit report to make sure that it is accurate and that discharged debts have been removed.

Remember that improving your credit score is a rebuilding process, and every positive thing that you do helps. By pursing as many of the recommendations above as possible, you should start seeing your credit score climb back up. For further assistance, contact our experienced bankruptcy attorneys today to set up a time to meet and discuss your situation.

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