Obtain a good and positive credit score again from rebuilding credit after bankruptcy.
One of the most common questions our bankruptcy firm receives from debtors is how to rebuild credit after bankruptcy. By working to eliminate or reduce your debts, catch up on past due payments, cut expenses, or pay off your unsecured debts, you are taking the initial steps to rebuild your credit unconsciously. However, as a debtor considering other effective choices once your debt is under control, you should consult a bankruptcy attorney.
With the help of the Golden Law Group, you can let go of your financial worries and dilemmas. If you are concerned about your credit score after filing for bankruptcy, then you are not alone. Our bankruptcy lawyer will be with you throughout the entire process of rebuilding your credit after bankruptcy. We are board-certified and experienced, and we treat customers with the utmost respect. Book a free consultation with us now!
Why Do I Need a Bankruptcy Attorney in Florida?
Rebuilding credit after bankruptcy may appear simple, but it involves several technicalities. You do not want to undergo the process repeatedly to correct your mistakes. Dealing with bankruptcy law is a difficult task requiring expertise in the relevant rules and procedures.
Hire a bankruptcy lawyer who possesses the following characteristics to avoid big mistakes while rebuilding your credit:
- Treats you with respect – Many consumers are reluctant to file for bankruptcy because it requires them to discuss sensitive issues. Personal choices are the most common cause of financial distress. Choose a bankruptcy attorney who will not pass judgment on you based on your financial situation. Get a bankruptcy attorney who will treat you with respect and courtesy.
- Do things right – You are hiring a bankruptcy attorney because you want everything to go as smoothly as possible. Nobody wants a bankruptcy lawyer who handles your case by trial and error. Choose someone knowledgeable about what they are doing.
- Minimize waiting times – You must avoid inefficiency to avoid delays. You need to hire consumer bankruptcy lawyers to accomplish this. A reputable bankruptcy attorney can speed up the process because they have long-standing relationships with bankruptcy court judges and clerks. On top of that, board-certified attorneys are highly respected.
The law firm of Golden Law Group is one that you can trust. Our team has been committed to assisting people in financial distress since 2002. We acknowledge the many reasons people inevitably suffer from financial problems, and we do not judge you based on your situation. We strive to provide the highest quality service using our knowledge and skills. If you need assistance with your bankruptcy case, schedule a free consultation with us today.
Rebuilding Credit After Bankruptcy in Brandon, Florida
You probably think of applying for new credit as soon as possible to reestablish it. However, this is not correct in the general sense. You have to note that your ability to obtain a good credit score is not dependent only on the credit accounts stated on your credit report but also on your assets and stability.
It includes how long you have been in the same field or job, how long you have lived at the same property address, and whether you have an active savings account. You may also improve your credit by providing details not stated on your credit report. Your current credit accounts may also help you reestablish good credit.
Rushing to get new credit can be detrimental. If you are applying for new credit but are not eligible, your credit report will reflect this in detail. That can significantly decrease your credit score, making it difficult to get credit later. Furthermore, getting credit amid financial difficulty will likely dig you deeper into debt. Below are the nine steps to rebuilding credit after bankruptcy:
- Avoid Late Payments with Non-Bankruptcy Accounts
After filing for bankruptcy, you have to determine which accounts remain open. Bankruptcy relief eliminates most of your debt, but there is typically some remaining debt, such as alimony payments or student loans. Repair your credit after bankruptcy by paying all your debts in full. Making a consistent monthly payment is one of the essential keys to rebuilding your credit. In addition to that, the lower your credit utilization is, the better.
- Do Not Engage in Job Hopping
It may be true that job hopping cannot directly impact your credit score, but it can influence creditors. When applying for new credit, a creditor considers your job history and income over the previous 24 months. They will also assess your credit score. Having a steady job gives your creditors confidence that you can repay loans even after your bankruptcy case is over.
- Apply For a New Credit
Usually, it is more challenging to get new credit after a Chapter 7 or Chapter 13 bankruptcy. Interest rates might be higher, including the fees, and getting approved might be harder. However, getting new credit after bankruptcy to demonstrate that you are a diligent and responsible debtor is imperative. As mentioned earlier, rebuilding a positive credit history of on-time payments can improve your credit positively.
- Have a Cosigner
Having a cosigner on a rental or loan agreement can give you greater chances of approval after bankruptcy. Cosigners can act as your financial backer in cases when you are not able to make payments. Paying credit accounts under your name can help you increase your credit score.
- Be Wise When Applying For a New Credit
Every credit application opens the possibility of a tough inquiry on your credit report. As a result, creditors view it as adverse behavior. If you are rejected repeatedly for new credit card applications, their requirements may be too strict for your present credit profile. You have to monitor your credit and check for any issues so you can apply for new credit more meticulously.
- Don’t Miss Payments on the Latest Credit Cards
Payment history is one of the most crucial factors in determining your credit score. It is necessary to make timely payments once you get your new credit. You can stay on top of your monthly bills by enrolling in autopay, creating reminders, paying multiple times in a month, and organizing your finances to help you pay off the whole balance every month.
- Report Your Payments to the Credit Bureau
Lenders and creditors are not required to report your activity to the concerned bureaus. Any creditor or lender you work with after bankruptcy should ideally report to all three bureaus so that your endeavors are documented and acknowledged. This way, it helps you boost your credit.
- Maintain Low Balance
Keeping your balance low on your credit card implies you are utilizing a minimal percentage of your available credit. Experts suggest a credit usage ratio of less than 30%. A low credit score indicates to creditors or lenders that you can repay what you borrow.
- Monitor Your Credit Report at all Times
Ensure that you will monitor your free credit reports after bankruptcy. If you notice an error, file an appeal right away. Golden Law Group can assist you in addressing bankruptcy-related items stated on your credit reports. Many debtors know the circumstances surrounding unfair credit reporting and outright inaccuracies. Remember that your previous bankruptcy should not remain on your report after seven to ten years have passed.
Call our Brandon Bankruptcy Attorney Now!
Dealing with the complex bankruptcy process by yourself can be a difficult task. As a debtor who just experienced financial distress, you deserve to be at ease. To rebuild credit after bankruptcy in Brandon, FL, should not be a task that stresses you more. To avoid having bad credit, you need to consult with a board-certified bankruptcy attorney.
Golden Law Group treats clients with the utmost respect, and we do things with care and diligence. For over two decades, our team has amassed extensive knowledge and a reputation throughout Florida for consistently providing high-quality legal representation.
Aside from bankruptcy concerns, we can assist you with creditor harassment, debt collection, debt relief, bankruptcy exemptions, foreclosure defense, garnishment defense, student loans, and suing creditors. Call us for a free initial consultation today!