Taking advantage of debt relief tools to help resolve an immediate financial crisis is one thing. Restoring solvency is another. There are some people in Georgia who hesitate to implement financial options such as bankruptcy because they worry about ruining their credit scores and being unable to rebuild their finances.
You’ll be glad to know that bankruptcy does not stay on your credit report forever. You can also take comfort in knowing that there are several ways to rebuild your credit rating after you have completed a Chapter 7 or Chapter 13 program. The goal is to start compensating for negative information on your credit report by adding positive information.
Do these things to help increase your credit score after bankruptcy
The following list provides multiple ways to build your credit score after you have gone through bankruptcy:
- Regularly check your credit report for errors because inaccurate information can hurt your score.
- Obtain a secured line of credit, which is a credit card backed by your own deposits, so the amount of credit you have depends on the amount of your deposit.
- Become an authorized user on someone else’s credit card.
- Create a budget and stick to it.
You can also ask someone you trust who has an excellent credit rating to co-sign a loan for you. You’ll want to make sure you can make payments on time before doing so, however.
Debt relief can be a new beginning
Instead of looking at bankruptcy like a sign of financial failure, consider it a valuable tool that helps you lay the groundwork for a stronger financial future. As you move on in life after bankruptcy, you can increase your borrower’s status with lenders by developing good financial habits. Consider applying for a rewards-based credit card and use it only for regular purchases, such as grocery shopping or pumping gas into your car. Using the card and making payments on time is the key to rebuilding your credit rating.
Long ago, there was a stigma attached to bankruptcy. Many people viewed it as a desperate measure. Today, more and more people are starting to understand that filing for bankruptcy can be a catalyst to future financial success. Encountering financial crises is not uncommon in the modern world. There are many more options available today to resolve financial problems than there were in previous eras. With careful research and experienced guidance, you can determine which type of bankruptcy best fits your needs at this time.