Filed Bankruptcy? Now To Rebuild Your Credit Score

So you’ve had some financial misfortunes that led you into bankruptcy? Not to worry! Bankruptcy offers an opportunity to rebuild your life, as you can learn from your mistakes and start over fresh with a new perspective and knowledgebase. While it’s true that bankruptcy can provide freedom from your financial woes, it does have an adverse effect on your credit score. Regardless of whether you chose Chapter 7 or Chapter 13 Bankruptcy, the next step you need to take is to start rebuilding your credit.

Rebuilding Your Credit Rating

One of the worst side effects of filing for bankruptcy is the hit your credit record takes; It can take several years and quite a bit of TLC to get your credit back on its feet. However, this doesn’t mean that you should give up on hopes of ever getting another car loan or mortgage in the future. If you are ready to make some life changes and develop a financial strategy, then you can steadily rebuild your credit rating after filing Chapter 7 or Chapter 13 bankruptcy in Chicago.

Additionally, some loans, credit cards, etc. will still be available to you. However your focus needs to remain on improving your credit score. This means you’ll need to pay your bills on time, every time. Missing even one payment may set you back even further. Not missing even a single payment is the number one key to rebuilding your credit.

If you are lucky enough to get a credit card or store card after your Chapter 13 or Chapter 7 bankruptcy in Chicago, you should use it as tactfully as possible. Make use of this credit card for a minimal amount every month. Make sure you pay off the credit card bill on time each and every month. This will show that you aren’t getting ahead of yourself with big purchases, and that you can consistently make your payments. Essentially, you need to show future creditors that you are no longer a risk for them to invest in.

A small charge of 10 to 20 dollars on your credit card is sufficient to show that you can use a credit card and repay it without issues. If you feel you are beginning to use the card more than necessary, it is advisable to take a debt management course that will give you pointers on how to avoid financial troubles. Your bankruptcy attorney in Chicago should be able to give you a reference for a financial counselor who will help you to organize your finances in the best way possible.

For more information on rebuilding your credit score or filing bankruptcy, contact Chang and Carlin, LLP today for a Free Bankruptcy Consultation.