It is possible to rebuild your credit after bankruptcy! In our thirty years of experience, our bankruptcy attorneys have helped hundreds of people find relief from debt. And we’ve seen how being discharged from debt has allowed them to move forward to build the life they deserve!
But we also understand that bankruptcy does do serious damage to your credit score. And that’s why we’re using today’s blog to discuss ways to rebuild after bankruptcy.
McCue Law Office in Bangor is here to help you through the process of choosing which type of bankruptcy is right for you and your personal bankruptcy attorney will be your advocate throughout the entire process. Contact us for a free consultation today.
Check Credit Reports
It’s a good financial habit to check your credit score and credit reports regularly. That’s especially true after bankruptcy. You’re allowed one free credit report every year, and it’s a minor fee to check more often.
You’ve worked hard to get a new start, and your credit report should reflect that. Your report should no longer show outstanding or delinquent balances. Any account that has been discharged through bankruptcy should show a $0 balance.
If creditors continue to report that you owe money, then you need to get in contact with the agency that is reporting your credit. You can send disputes to credit bureaus and have your account updated if there are errors.
Keep Paying Nonbankruptcy Accounts
As your bankruptcy attorney will tell you, not all debts are included for bankruptcy discharge. For example, student loans are usually not included, so you should keep paying off these loans to rebuild your credit. Positive payments will slowly improve your credit score.
Use A Secured Card
A secured credit card is a great way to rebuild credit. They’re backed by collateral and should have low fees for people with low credit scores. No matter how bad your credit score is, there will be credit card companies that will try to persuade you that their card is the one you need.
The downside of a secured card is that you’ll need to give an upfront deposit. It is refundable, but you’ll need to part with it in order to get the card. They also have low credit limits. If you have enough cash on hand to get a secured card, we highly recommend that you do.
Carefully Apply For New Credit
It’s important that you have lines of credit open so that you can demonstrate your ability to pay back your debt. Avoid applying for several credit cards or putting in multiple loan applications at once. If you’re getting turned down, it may be because lenders think you are desperate for credit.
Take Your Time
Credit takes a long time to build. It’s a marathon, not a sprint. So be patient with yourself and with the system. Don’t rush to rebuild your credit score and take it one payment and one month at a time. Use credit for what you can afford to pay off.
Bankruptcy won’t always feel like a burden. It might take a few years, but you can earn a high credit score. Credit, just like debt, is always a changing process. And it’s something we learn to navigate over time.
McCue Law Office Bankruptcy Attorneys Bangor
McCue Law Office in Bangor is committed to helping our Maine clients find relief from overwhelming debt. If you need a fresh start, contact one of our bankruptcy attorneys today.