Re-establishing Credit after Bankruptcy
After your bankruptcy is finalized, it’s important to begin re-establishing your credit. There are a number of simple steps you can take to begin this process. In the past, banks used to send out credit card applications to people a few months after they filed for bankruptcy. Typically, the credit card offered is a low balance, high-interest rate card. If you don’t receive a credit card solicitation, you can apply for a secured credit card to begin rebuilding your credit. You’ll have to deposit collateral to cover the limit of your card and interest rates will be higher but it will allow you to establish a history the responsible use of credit. If you make timely payments and pay off your balance on a fairly regular basis, your credit limit will be increased and your interest rate should decrease.
Staying employed is key after declaring bankruptcy. First, an income is important for paying bills and staying current on your mortgage if you own a home. Second, if you filed under Chapter 13, it’s crucial that you comply with the terms of your bankruptcy. Third, if you can set aside a bit of savings — even if it’s just a few dollars each paycheck — in your bank account, over time your credit score should improve.
There is life after bankruptcy. Too often, however, people put off filing for bankruptcy because they mistakenly believe once they do, they’ll be forever marked, unable to borrow or use a credit card. To learn how we can help you, contact Denver bankruptcy lawyers at Mile High Bankruptcy, PC, today to schedule a free consultation to discuss your case.
Common Tags: Life After Bankruptcy Colorado, Rebuild and Repair Credit CO, Build, Repairing, Rebuilding, What Happens, Employment, Build, Loans, Mortgage
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