You can begin to rebuild credit immediately following Chapter 7 bankruptcy in Chesterfield, VA.
Like many Virginia residents, you may worry bankruptcy will permanently and irreparably damage your credit. Yes, it is true that bankruptcy does have a negative impact on your credit, it does not last forever and you can immediately start to rebuild credit.. In fact, bankruptcy does have some immediate positive effects.
First, discharging debt lowers your debt-to-income ratio nearly immediately.
Second, once you complete a bankruptcy, you typically cannot file another bankruptcy for at least six years. This can make you look more secure to lenders, as there is little chance your debt will be discharged again.
If you have already been struggling financially for months or years, contact Chesterfield Bankruptcy Law today. By this time next year, you could be nearly debt-free and starting to rebuild credit!
Improve Your Credit Score and Rebuild Your Life
A Chapter 7 bankruptcy will remain on your credit report for up to 10 years, but that does not mean your credit rating suffers that entire time. If you take the right steps, you can rebuild your credit and find success after bankruptcy.
Here are 5 tips to rebuild credit after Chapter 7 bankruptcy
1. Go to credit counseling.
Credit counseling is typically required as part of your Chapter 7 bankruptcy. If it’s not, it’s a good idea to take part in a course anyway. They are very affordable and can offer practical, useful tips to help you better understand and manage your finances.
2. Start saving.
After a bankruptcy, your debts will have been greatly reduced or eliminated entirely. Without the burden of paying those monthly bills, you should be able to begin to save money and rebuild credit. This is both a good habit and can help you in the future if you run into unforeseen problems. Rather than spiral into high debt, you can address the issues with your savings.
3. Avoid credit repair agencies.
Unfortunately, some businesses will claim they can remove the bankruptcy from your credit report or offer some other fix for a fee. These companies can do nothing for you that you cannot do yourself. Simply check your score regularly and make sure to address any errors you may find.
4. Get a secure credit card.
The only way to rebuild credit is to use it wisely. A secure credit card offers a chance to use credit with low risk. You obtain the credit card with a deposit to the bank. The bank will allow you to use the card for the amount of your deposit. This eliminates the risk and temptation to spend more than you can pay. While these cards can require fees and come with high interest rates, the goal is to use this card for a short time.
5. Go slow.
It may feel like an insurmountable task, but rebuilding credit after bankruptcy requires that you are careful and thoughtful. Do not attempt to obtain too much credit too quickly. This both scares off lenders and can create a higher risk of running into financial trouble again.
SCHEDULE A FREE CONSULTATION WITH CHESTERFIELD BANKRUPTCY LAW TODAY
Move "rebuild credit" to the top of your To-Do list!
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