How to Rebuild Your Credit After Filing Bankruptcy

Credit-repair-101-300x200Filing bankruptcy is a powerful tool you can use to get free of debt and give yourself a fresh financial start. Part of this is the opportunity to repair your credit going forward. While your credit will take an initial hit right after filing, there are many ways to restore it. Bankruptcy stays on your record for 10 years in most cases. If you don’t take action to increase your credit score during this time, you might find it difficult to lease an apartment or buy a car. It is important that you move as soon as possible to start restoring your credit after you file bankruptcy.

Track credit score/reports

If you file bankruptcy in Jacksonville, consider why you had to in the first place. Was it due to overspending? Medical expenses? Loss of employment? Figuring out the cause of your situation will help you in making an effective plan moving forward. After figuring that out, create a budget to keep track of your expenses. This will help you avoid unnecessary spending that will hinder your goals of credit restoration. When you have a solid budget in place, get free annual credit checks to keep track of your score.

Applying for Secured Credit Cards

Your past credit history before you file bankruptcy in Jacksonville can make you look like a risky borrower to lenders. There can be ways around this, though. One of the more common methods is to get a secured credit card.

It might seem counterintuitive to repair damaged credit by taking on more debt. However, this may be one of the fastest ways to begin rebuilding your credit. When you can sign up for a secured credit card at your local financial institution, you put down a deposit. The deposit amount sets the amount of credit you are given, almost like a debit account. The interest rates are often higher and there are annual fees associated with the cards. Not all banks report credit history to credit bureaus, so make sure that your bank does before applying.

Getting a Cosigner

In some instances, you might run into trouble finding lenders after you file bankruptcy in Jacksonville. Many lenders will not be willing to take on a borrower with bankruptcy on their record. If you find this is an obstacle to you, you might want to consider a cosigner with good credit. Remember to keep up your payments, as the cosigner’s credit will be damaged if you don’t. If you neglect to pay the amount agreed, this can also damage your relationship with a friend or loved one.

Once you find a cosigner or a lender, be vigilant in paying off the debt on time. Limit your spending and keep your balances low to better manage the amount you’ll have to pay. This will also prevent you from having to deal with more substantial payments that caused you to file bankruptcy in Jacksonville.

Find an Experienced Attorney to Help You File Bankruptcy in Jacksonville

Rebuilding your credit after bankruptcy can be an intimidating undertaking for some people. It doesn’t have to be. With an experienced bankruptcy attorney on your side, you can be on the road to financial repair and freedom from debt sooner than you think. The experts at Parker & DuFresne are here to help you. Call us today 904-432-3678 for a free consultation or visit one of our locations found here.