How To Increase Your Credit Score Once You Have Filed Bankruptcy
If you are considering filing bankruptcy, you may be concerned about how hard it could be for you to rebuild your credit. The good news is there are several ways you can go about re-establishing your credit so you can get back on track in a relatively quickly amount of time. This article will help you to rebuild your credit once you decide to go ahead with the process of filing bankruptcy.
Pay all your bills on time: You want to pay all of your bills on time so nothing else negative appears on your credit. Even one late payment will hurt you severely when you are just coming out of a bankruptcy. You need to show nothing but a positive payment history if you are going to see your credit score rise.
Don't apply for many lines of credit: When you come out of a bankruptcy, you will see a lot of advertisements that claim to offer credit to those just out of bankruptcy. While it may seem like a good idea to start new lines of credit so you can begin showing positive payment history, applying for too many can actually hurt your score. Each time you apply for credit, you will receive what's known as an inquiry on your credit. The more inquiries, the worse your credit score will become.
Get a secured credit card: Secured credit cards are very easy to get, since you will be funding the account with your own money. The credit cards work much like others with regards to there being interest and a minimum amount you need to pay each month. Always pay at least the minimum amount due, and make sure the payment reaches the company on or before the due date.
Use your secured credit card wisely: When you get a secured credit card, you want to make sure you don't come close to using the entire amount of credit. Instead, use a small portion and pay it off right away. This is going to help bring your credit score up faster, where maxing the card out and paying only the minimum can actually hurt your credit score.
By paying close attention to your bills and making sure you pay everything in the allotted time frame, you can avoid any more dings on your credit and watch your credit score get higher. This is going to make your life a whole lot easier financially.