You took the leap and filed for bankruptcy. What a relief. Now that you have begun to resolve your debt, it’s time to look at your credit.
It’s likely that your score took a bit of a nosedive in the time before you filed, but that doesn’t have to be the case forever. There are ways practical ways that you can begin rebuilding your credit after bankruptcy.
Check your report
Make sure that your credit report accurately reflects where you are now. Experts say that it’s better for your report to show your bankruptcy than to still reflect debt. Report any errors that you find and get them corrected.
Keep an eye on your credit score
Even if your credit score isn’t where you would like it to be right now, it’s likely that it will get better soon. Track one type of credit every month so that you know where you are at.
Find ways to build credit
Finding ways to build credit through personal loans or credit cards can be one of the most difficult parts of your financial life after bankruptcy. Take your time and don’t apply for too much at once, as getting turned down can negatively affect your score. Applying for a secure loan or secure credit card can be good options, as can using a co-signer with good credit history.
Get strict with budgeting
Now is the time to break old habits and build new ones. Build yourself a clear budget that will be easy to follow and do your best to stick to it. Don’t let yourself slip back into old patterns, but instead be aware of your finances and where you are putting them. Start putting money into an emergency fund as well to make sure that you are setting yourself up for success.
Know your payment schedules
As part of your budget plan, make sure that you know and stick to your payment schedules. Whether it’s rent, credit card payments or certain expenses that are left over after bankruptcy, put payment dates on your calendar and make sure to stick with them.
Rebuilding your credit after bankruptcy can feel overwhelming. It takes time, so be patient. Focus on creating good, responsible financial habits that will help you stay out of debt in the future.