- posted: Jan. 08, 2013
Filing for bankruptcy can feel like an ending instead of a beginning. However, it does not have to be. It’s true, once you file for bankruptcy your credit rating takes quite a hit. But your credit is not ruined forever. In fact, as soon as your bankruptcy case is closed, you can take steps to begin rebuilding your credit. Talk to your Boise bankruptcy lawyers on the best ways to get started in your particular situation.
However, in the meantime, here are five general ways you can start the process of getting your credit back after bankruptcy.
- Apply for store or gas cards where you normally pay cash. Pay off the balances in full each month.
- Open up a secured credit card. A secured credit card means you deposit a certain amount of money into the bank, and that amount of money is your credit limit. Ensure the lender does not hit you with extra, hidden charges to open the card. Also, make sure the lender reports to the three big credit agencies so your on-time payments go onto your credit report.
- Avoid “payday” loans. The interest rates are sky-high and they are a credit trap.
- Check your credit report a few times a year to ensure there are no mistakes that might be detrimental to your score. It’s important to stay on top of things and be proactive.
- If you get a credit offer for an unsecured card, go ahead and open one if you are positive you can pay the balance off each month. Again, look for upfront or hidden fees, and ensure the lender reports to the three big credit agencies. Request a credit increase every 12 months, but continue to pay off your balance on time.
A Boise bankruptcy attorney can give you even more advice and options on how to best rebuild your credit after filing for bankruptcy.
At Foley Freeman Attorneys at Law, we understand that bankruptcy is a traumatic and complex process. We are here to help.