Money Savings and Budgeting tips to maximize your salary and also provide damage limitation precaution when you already in a bad position financially
How To Rebuild Your Credit After Bankruptcy?
When you file for bankruptcy, your credit score takes a hit and will end up in the lowest rankings depending on the severity of your bankruptcy and your past credit history.
However, there are ways that you can rebuild your credit after bankruptcy.
Before you file for bankruptcy, you should at least zero out one credit card that has a low interest. Your issuer might not allow you to keep this card, but if you are able to keep it then you are able to use it as source of potential good credit, which can help to rebuild your credit.
Any marks that appear on your credit history that bring up your bankruptcy are not good. You should get in touch with your creditors to see if they are willing to remove their zeroed balances from your credit report. Getting rid of these blemishes can automatically improve your credit.
It might be an idea to take a credit card, but the credit cards that you are able to get will have high interest rates and high annual fees. However, taking one of these cards can help to show that you are able to make timely repayments. You will need to make sure that you have allocated cash in your budget so that you are able to pay off these new cards, otherwise you will just run into the same problems. You may find that some issuers will need you to put up some collateral in order to qualify.
You can also sign up to be an authorized user of a third party’s credit card so that you are able to benefit from their credit. You don’t even have to make any purchases on this credit card, because the bureaus will see that you are able to maintain a line of credit that is in good standing and will reward you.
You should never assume that your credit score will be automatically boosted by the bureaus after you have better borrowing habits. Check your reports regularly to ensure that your borrowing behavior is being noticed after bankruptcy.