Tips to Build Your Credit Score after Bankruptcy
Apart from the financial loss, a bankruptcy leaves a stubborn scar on the human mind. But we consider it a part of life, like an accident. Still, bankruptcy has some factual consequences that cannot be overlooked. This situation is terrifying, and people often go into depression as a result, though sometimes it is portrayed as a lawyer whisking away all your problems in one day while leaving you mellow on the beach. When bankruptcy affects you in a number of ways, leaving you in financial distress, remember these tips given by a bankruptcy lawyer in OKC to build up your credit score again.
You should budget remaining debts. After filing bankruptcy, you might find that most of your debts have been wiped out, though some may remain. You should create a plan for these remaining debts to help you never miss an installment or make a late payment. Stop using credit cards, keep track of your expenses and spending, and try to build up an emergency fund.
One of the most common mistakes is not reporting negotiated accounts to the credit card bureaus. This means the accounts are still shown as delinquent, which will lower your credit score. Once your bankruptcy case is completed, you must provide that information to the bureau and wait one or two months for everything to get updated.
The next step is using a secured credit card. The bottom line is, watch your expenses. A responsible and on-time payment of your monthly bills or installments is considered the quickest way to build up your credit score again.
This is a crucial one: You can apply for an installment loan, but do not borrow much—only enough to increase your credit score. An expert bankruptcy lawyer in OKC suggests diversifying your credit portfolio and increasing your score by adhering to on-time monthly installments.
Give yourself the required time. The older your bankruptcy filing is, the less impact it will have on your credit score. This means that after five to six years after filing bankruptcy, your credit score will be much better than it is now.
Do not get trapped by credit score repair services. A bankruptcy lawyer in OKC can tell you some real-life experiences in which credit score repair services claim to improve the score, but instead they make more damage to the customer’s finances.
** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.