Skilled Advice On Rebuilding Good Credit After Bankruptcy
A bankruptcy gives you the relief of not only a financial fresh start but also the worry that your credit will be ruined forever. If you take a proactive approach to rebuilding credit after bankruptcy, however, you can begin to rebuild your credit right away.
The attorneys at Levitt & Slafkes, P.C., in Maplewood, New Jersey, have guided clients for more than 30 years, helping them determine the path toward regaining solid credit footing after a bankruptcy. We are skilled, understanding and reliable.
Insightful Advice Toward Rebuilding Credit
Through the years, we have represented hundreds of clients in bankruptcy matters. Among the important steps to take to help rebuild your credit include:
- Make a fresh financial start: It is true that bankruptcy filers will typically see a short-term dip in their credit scores, but for many debtors, bankruptcy can be the first step toward a better credit score. Bankruptcy provides a way to stop the endless cycle of debt.
- Use credit to build credit: It might be surprising, but one of the best ways to begin rebuilding good credit after bankruptcy is to start using credit again. Once you get a lender to extend credit, charge only small amounts to get in the habit of paying off the entire balance each month. Above all else, it is important to make all loan and credit card payments on time every month. This creates a new pattern of financially responsible behavior that will demonstrate to potential lenders that you can be counted on to repay debts.
- Shop around for better credit terms: At first, recent bankruptcy filers may have difficulty obtaining credit with favorable terms. However, it is important not to jump at the first offer. Beware of offers stating “Bad credit? No problem!” These lenders may be setting borrowers up to fail with high interest rates, costly hidden fees and other unfavorable terms.
One option for some consumers is getting a secured card at a bank or credit union. These cards require an upfront security deposit, which is often equal to the credit limit. A well-chosen secured credit card can provide a good re-entry point for establishing good credit after bankruptcy. When choosing a secured card, be sure to read the fine print and compare several options before choosing one.
Receive A Free Consultation From Skilled Lawyers
If you are interested in learning more about how to rebuild your credit after bankruptcy, call the attorneys at Levitt & Slafkes, P.C., in Maplewood, New Jersey. We offer free initial consultations by calling 973-313-1200 or you can contact our lawyers online.