With over 1 million individuals and businesses across the nation filing for bankruptcy in 2013, bankruptcy may no longer be something individuals in Long Island avoid doing when their debts have spiraled out of control. Bankruptcy offers a means to settle these debts and regain control of your finances. And, while it may seem that filing for bankruptcy will affect your credit forever, this is not true. Although filing for bankruptcy will impact your credit for a number of years, there are ways to rebuild your credit after filing for bankruptcy.
First of all, keep an eye on your credit score. It may be somewhat distressing at first if your credit score is low. However, it is important to review it to see if any mistakes are made and so that you can get the big picture of which debts you still owe. This will allow you to formulate a plan to pay off any remaining debts. Also, monitor your credit score on a regular basis to ensure it is improving over time.
Second, one can start rebuilding their credit by opening a new bank account. This shows financial stability. It also wipes the board clean, so you can start good financial habits from the get-go. In addition, if you have a bank account, you can set up automatic bill pays to ensure your debts are paid on time. This could also help rebuild your credit.
Third, it may help to try to obtain a secured credit card. This may seem counterintuitive if credit card debt is what caused you so much financial strife in the past. However, secured credit cards are a good way to rebuild your credit. Some have low interest rates and annual fees. Similarly, obtaining retail cards and gas cards can be another way to rebuild your credit. These cards are often obtainable even to those who do not have good credit. That being said, with any of these cards, make sure to pay the entire balance in full each month. This can not only be good for rebuilding your credit, but it can also show that you are secure financially.
These are only a few tips for rebuilding your credit after the bankruptcy process is complete. Bankruptcy offers many advantages to debtors, including the ability to rebuild their credit as they move into the future.
Source: The Huffington Post, “How to Rebuild Your Credit After Bankruptcy – Fast,” Curtis Arnold, Dec. 15, 2014