Our credit scores seem to make or break our financial futures these days. A good credit score means smooth sailing as far as financing and loans are concerned. A bad credit score can put serious road blocks in your way. Bankruptcy is about the worst thing that can happen to your credit score. The process is lengthy, stressful and quite often people end up with the bare basics.
Life does go on however even after a financial set back such as this. Bankruptcy will make things difficult for a time but with some determination they will improve. In this article we will show how to rebuild your life and credit score after bankruptcy.
Bankruptcy can affect your credit for up to 10 years. However, if you keep control of spending in as little as -3 years your financial picture can look much more promising. To start to boost your credit rating again, one of the first things you should do is obtains a major credit card. It is easier than many people think.
You may only get a small limit but actually several companies will still offer cards to those with bankruptcy. Bankruptcy gives you the advantage of a clean slate. Your new creditors will know that you have no other debt. By law you cannot file for bankruptcy again for another 7 years. One way or another they will get their money.
The next thing you need to do is find steady employment. Usually 1- years is the minimum time required? Lenders consider longer terms of employment more secure than those jobs you only have for a few months at a time. Earning a regular salary and wage also helps. Once you get your card, make regular payments and make them on time. Do not max out the card. Leave some space as this helps to raise your score.
It won’t happen over night but it is possible to raise your score after bankruptcy. By taking care of bills, staying in steady employment and making payments on time. Bit by bit your score will rise again.