Filing for bankruptcy allows you to get a fresh start with your finances – including your credit score. Although your current credit score may drop after filing for bankruptcy, you can take proactive steps to rebuild your credit and get it to where you want it to be. To help you, our Irvine credit repair attorneys have put together four steps you can take today to rebuild your credit.
#1: Make Monthly Payments to Non-Bankruptcy Accounts
Every positive mark on your credit report will help you increase your score in time. One of the things that will help you build your credit score is making monthly payments on non-bankruptcy accounts. For example, if you still have student loans after bankruptcy, you should plan on making monthly payments on time to build your credit. Write down payment due dates on your calendar today so that you can make on-time payments.
#2: Develop a Budgeting System
Building credit is about managing your debts accordingly and taking ownership of your payments. It will be extremely difficult to do so unless you have a good financial budget in place. You can create an excel spreadsheet that outlines your income and expenses, along with creditor information and due dates, so that you can always look at the big picture of your financial situation.
#3: Apply for New Credit
Although it can be a bit more challenging to get new credit after bankruptcy, opening a new line of credit can help you prove that you are a responsible lender. Building up a consistent track record of on-time payments gives your credit score the positive history it needs to start boosting it in the right direction.
#4: Keep Your Balances Low
When your balance is low on your credit card, it means that you’re using a smaller percentage of your overall available credit. Experts advise that you don’t use more than 30 percent of your available credit balance. Keeping a low balance will make it easier to follow the steps listed above, such as making on-time payments.
Contact McFarlin LLP today at (949) 570-5025 to learn how we can help you rebuild your credit after bankruptcy!