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Improving your credit score after bankruptcy

Most people do not pay much attention to their credit score, which is easy to do when they have always been able to pay their bills on time and have not acquired too many debts. But even the most responsible consumers can be affected by unforeseen circumstances, such as a loss of employment or medical bills. Credit cards can float expenses for a while, but eventually the debt can accumulate to a point where payments are no longer manageable. Late or late payments can reduce your credit score, but you can avoid bankruptcy, hoping to stop any additional damage. However, sometimes bankruptcy is the right option, and there are things you can do to rebuild your credit score after filing.

Your credit report

If you have a pattern of late payments, filing for bankruptcy can eliminate many of your unsecured debts and put an end to those late payments. A bankruptcy will reduce your credit score, but after it is filed, you will be given a "Debtor Discharge" document that shows that your debt has been forgiven. At this point, negative credit events stop and you can begin to establish a positive credit history. First, you must request credit reports from the three credit reporting agencies: Equifax, Experian and Trans Union. Review all the information in your report to ensure accuracy, especially if the debts included in your bankruptcy show a zero balance. You can correct any error by contacting the credit agency.


After making sure you have a clean credit report, you can start adding positive elements. Most likely, you will receive credit card offers as soon as your case is resolved, but be sure to check the terms carefully before accepting. You may need to start with a secured credit card with high interest rates and high rates. While this is not ideal, it is a place to start, and you can avoid paying any interest by making only small purchases and paying them in full, on time every month. You may even want to use your credit card for a small monthly bill and set up an automatic payment, essentially ignoring the fact that you have access to credit to avoid the temptation to overdo it. As time passes, you will receive better offers for new credit cards or you can renegotiate the terms of your current card. Soon, your credit score will improve and qualify for better and better options.

Going forward

Like most negative events in life, ignoring your credit will not improve circumstances. It is better to be fully informed about your financial situation and take direct measures to make changes. If you have a debt that you think you will never be able to pay, the first step is to determine if you can review your budget to return to normal. If this is not possible, let me help you explore your bankruptcy options. After making this bold move, the opportunities to rebuild your credit will be presented and you will get back on your feet.

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