Bankruptcy protection provides relief to people and companies from their debt burden. The process provides a helping hand to people who have fallen deep into the debt hole. Through a bankruptcy protection, you can eliminate at least some of the financial obligations to help reboot your financial life.
That being said, there are certain negative consequences of Filing Bankruptcy. Typically you won’t be able to get a loan to purchase a house right away and interest rates for car loans may be higher. Credit Scores are impacted, due to past due debts. However, your credit score rebuilds quickly if you take certain steps:
That’s why it’s important that you take steps to significantly improve your credit score if you want to be able to take out loans to meet future financial obligations. Following are five simple steps that you can take to improve your credit score after bankruptcy.
1. Review your Credit Standing
The first step in rebuilding your credit score depends on where you stand at the present. You should review your current credit report and make sure that there are no inconsistencies in the report.
You can request for a free copy of the credit score from Experian, Equifax, and TransUnion by visiting the site AnnualCreditReport.com. Credit.com is another website from where you can obtain free credit report. The report contains an overview and breakdown of your current credit standing.
2. Maintain Low Credit Card Balance
An important advice to boost your credit score is to maintain a low credit card balance. Having a high balance will greatly hurt your credit score. Make sure that the credit balance on each card represents 35% or less of your overall credit limit.
For instance if you have a $2,000 limit on the credit card, you should maintain a balance of at least $700 by making timely payments of the balance.
3. Sign-up for a New Bank Account
Opening a new saving or current account will show that you have achieved financial stability. When opening the account, you should request the banker for automatic online bill payment. This will reflect positively on your credit score as all the bills will be paid on time without delay.
4. Obtain a Retail Card
Retail cards that are offered by gas stations and other shoppers typically don’t require a good credit score. These cards look good on your credit report especially if you make the payments on time. The payment is due every thirty days.
Paying the balance on time will also allow you to save interest charges that are accrued on the balance amount. And good payment history is the single most important factors that accounts for around 35% of the score.
5. Be Patient!
The final advice for rebuilding your credit score after bankruptcy is to be patient. By taking small effective steps, you can quickly recover your credit score. The sooner you take active role in rebuilding your credit score, the quicker you will be able to bounce back from bankruptcy.
Are you thinking about filing for bankruptcy protection?
Then you should consult a professional bankruptcy attorney from Walker Law to get relief for paperwork and legal hassles involved in filing for a bankruptcy protection in West Palm Beach, FL. Our experienced bankruptcy attorneys will expertly guide you throughout the bankruptcy process. A number of factors determine what steps to take to benefit from bankruptcy protection.
You can contact the bankruptcy attorneys at Walker Law Firm to get professional and expert help with your bankruptcy cases. Find out more about our legal advisers by visiting www.walkerlaw.net