Taking the first steps after filing for bankruptcy can be scary. You’re not sure what the future of your finances will look like and you’re fearful that your credit score is beyond repair. While bankruptcy will negatively impact your credit score for a period of time, there are steps you can take to fix your credit score after bankruptcy.
Begin To Fix Your Credit Score Immediately
You should begin to rebuild your credit score immediately. Bankruptcy stays on your credit report for seven to ten years. Every effort towards fixing your credit score after bankruptcy offsets the negative report on your credit score.
When you file for bankruptcy, your credit score plummets by 130 to 200 points. This drop in credit can be scary. But, making immediate strides towards fixing your credit score will slowly wipe away the bad credit.
Implementing positive credit habits immediately after bankruptcy will lessen the impacts of bankruptcy on your credit score. This is because, in the case of Chapter 7 bankruptcy, you no longer owe the debts that have been dismissed. Take time to learn about bankruptcy and its influence on your personal credit score. Doing this will help you understand what financial habits will work best to increase your credit score.
To Fix Your Credit Score After Bankruptcy, Consider Taking The Following Steps
First, work a credit repair company to create a plan of action that will boost your credit score immediately after filing for bankruptcy. Entrusting a professional to help you in your efforts will keep you on track.
Next, find a product or plan that will fit your situation. This may mean establishing a secured line of credit or applying for a credit builder loan. These actions will help you begin a new, positive history of payment. Additionally, timely payments on credit cards and loan payments keep debts low and prove to a lender or banker that you are capable of paying off debts.
Finally, be proactive about checking your credit score often. Companies like USA Credit Repair offer free credit reports, credit evaluations, and credit repair services that can help you fix your credit score after bankruptcy.
Don’t Be Afraid: There’s Hope
According to FICO, it takes a little over 5 years to rebuild a credit score after bankruptcy. Given that you develop positive credit practices, you can fix your credit score after bankruptcy in 5 years.
If you’re asking yourself how does this benefit me if my bankruptcy is still on my credit report, you’re asking a valid question. Though bankruptcy will be listed on your credit report, the proof of positive credit habits can outweigh the bankruptcy in the eyes of a lender or credit card issuer.
Remember: an excellent credit score will not happen overnight. Take the first step and contact a credit repair specialist to educate yourself on the terms of your bankruptcy and the plans your bank or lender can offer you to fix your credit score after bankruptcy
For more information on how you can clean up your credit report and increase your score, contact USA Credit Repair today!