When working to file bankruptcy, one of the most commonly asked question is how bankruptcy can affect their credit score. Bankruptcy lawyers in Baltimore will tell you that yes, bankruptcy can affect your credit, but you can rebuild your credit score and possibly make it higher and stronger than it was prior to bankruptcy. It is important that you understand how you can work towards rebuilding your credit after bankruptcy.
Secured Cards
Applying for a secured card, which is one where you deposit cash before charging anything, is a good idea to start rebuilding your credit following bankruptcy. However, bankruptcy lawyers in Baltimore advise that you only choose a card whose company reports to the three major credit reporting agencies. If you are actively using the card and paying it back immediately, and if it reports your credit activity, you will notice positive changes on your credit report.
Save Your Money
If you do not already have one, you need to open a savings account and begin saving money. While this may seem difficult, you need to try very hard. Bankruptcy lawyers in Baltimore will advise you that if you do need to purchase something, such as a car, you will need a down payment. Further, the more money you have saved for the down payment will help to lower your interest rates, saving you even more money in the long run. Saving money will help lenders see that you have changed your spending habits and learned how to control money better, which also increases the likelihood they will approve you.
Pay On Time
Although you know how important it is to pay bills on time, bankruptcy lawyers will advise you that following bankruptcy it is even more important. You want to build a history that shows that you pay your bills on time. This includes paying your pre-bankruptcy debts on time as well.
Do Not Exceed Your Limits
When it comes to bankruptcy rebuilding you need to learn to live within your means. This means that unless you have cash for something, you do not get it. Do not continue to live your life on credit cards, as you did prior to bankruptcy, which may be what put you in your current situation.
Following these simple rules on how to rebuild your credit will help you prove that you have learned how to responsibly manage your money. You will gradually obtain, if you do not currently have, only items that are necessary – a home and a car. You will also learn to control your spending and eventually your credit score will rise, which is the goal of life after bankruptcy.
There are many Bankruptcy Lawyers in Baltimore, but none are more ready and willing to help you than the Law Offices of Frank E. Turney, P.A. Contact his office today at 410-788-8830 for a free consultation regarding your bankruptcy concerns.
