,

You Can Raise Your Credit Score After Filing For Bankruptcy–Here’s How

A good credit score could be the difference between getting approved for a single-family home or having to live in a half-decent apartment.

 

Ragland, AL–Bankruptcy is great for individuals and businesses who are looking for a fresh start. In most cases, filing for bankruptcy can help you eliminate some or all of your debt, allowing you to focus on your future rather than on how you’re going to repay creditors. 

Although bankruptcy carries many advantages, it will have a hard impact on your credit score. Here are a few ways you can raise your credit score following bankruptcy.

 

3 ways to raise your credit score once you emerge from bankruptcy

 

  • Open a new line of credit

Opening a new line of credit is important as it will help you to prove to new creditors and lenders that you’re capable of managing your money and paying back what you owe. However, if the bankruptcy filing has caused your credit score to suffer, and you can’t get approved for a credit card, there may be other avenues you can take to obtain a new line of credit.

In today’s day and age, there are plenty of companies like Seedfi that offer credit builder loans. A credit builder loan works like this. You’re given a “loan” and must make payments on that loan until it is paid in full. However, instead of receiving money upfront, you can only access your loan once it is paid in full. Credit builder loans and secured credit cards are two things you can use to rebuild your credit after bankruptcy

 

  • Reduce your debt-to-income ratio

If you have an active credit card, remember to keep your balance at or below 30 percent of your credit limit. If you want your credit card to have a positive reflection on your credit score, you’ll need to keep your usage to a minimum.

 

  • Pay on time

The factor that impacts your credit score the most is payment history (1). When you pay your credit card statement on or before the due date, this, along with other factors, will help raise your score–even if you filed for bankruptcy. Therefore, always make sure you’re submitting your payments on time.

Now, if you’re someone who is considering filing for bankruptcy but isn’t sure if it’s the right option for you, you can always contact Hill, Gossett, Kemp & Hufford, P.C. to learn more about the process. Simply ask to be connected to attorneys near me and you’ll be well on your way to learning more about bankruptcy and whether you would make for a good candidate.

 

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

 

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

 

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

 

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

 

Springville Office 

6441 U.S. Highway 11

Springville, Alabama 35146

Phone: (205) 467-2225

 

Source:

  1. https://www.experian.com/blogs/ask-experian/what-factor-has-the-biggest-impact-on-credit-score/

Photo Credit: Photo by Anna Shvets from Pexels

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.