5 TIPS TO HELP YOU REBUILD YOUR CREDIT SCORE
Posted on 11 26,2013
Bankruptcy is a legal process geared to help an individual eliminate all outstanding debt so that he or she can get a fresh financial start on life. Filing for bankruptcy can provide an untold amount of relief to an individual who has been struggling to win a losing financial battle. While there are numerous benefits to bankruptcy, one downfall is that bankruptcy will have a negative impact on a person's credit score. On the positive side, it will not be permanent. If you have completed the bankruptcy process and your debts have been discharged by the bankruptcy court, your next step is to start rebuilding your credit score. Here are 5 tips that can help:
- Pay your rent and utilities on time. Fulfilling your financial obligations and handling your household expenses responsibly will demonstrate that you are trustworthy. Doing this one action alone will be a good start towards rebuilding your credit.
- Go to your bank or local credit union and find out what you need to do to obtain a secured credit card. A secured credit card is a credit card backed by your own personal money. You can help rebuild your credit by using your secured credit card regularly, not attempting to exceed your credit limit and replenishing your funds so that you always maintain a minimal balance. When you show that you can manage a secured credit card, you may be able to obtain a unsecured credit card. Never over-extend your credit. You are only looking to rebuild your credit score, not fall back into debt.
- Apply for a store or gas credit card at places you frequent. Having this type of credit card will help improve your credit score providing that you maintain a low balance and you make on-time payments. As holds true for an unsecured credit card you need to budget your expenses wisely and never over-extend your credit as that will lead you back into debt.
- At no time should you consider a payday loan advance as an option. These types of loans commonly come with extremely high interest rates. You could easily find yourself owing more than you can afford. Taking out this type of loan will not help improve your credit score.
- Most of all, be patient. Rebuilding your credit score takes time. If you pay your bills on time, only use your credit cards for small purchases that you can rapidly pay off, and know your limits your credit score will go up.
We at the David McCormick Law Group take pride in helping our clients not only successfully navigate through the entire bankruptcy process, but be fully prepared for life after bankruptcy. From beginning to end we are here to help you with all of your bankruptcy and debt-related needs. We have represented more than 17,000 cases and helped many people, just like you, get out from under the financial burdens that were weighing them down. If you want more information about rebuilding your credit score or you need legal representation in a bankruptcy case, call a Virginia Beach bankruptcy lawyer at our firm. Get a fresh start on your financial future now!