It is estimated that over one and one-half-million people will file bankruptcy in 2013 throughout the United States. Many fear after they file bankruptcy that they will never be able to build a good credit score again; however, with some careful planning, there are plenty of opportunities to establish a positive credit rating again. Grand Law Firm can guide you throughout your bankruptcy and help you determine the best way to start fresh with your finances.
The five most common ways to build your credit after bankruptcy include:
- Stay current with current debt you owe. Bankruptcy will not eliminate all debt, and it is imperative to pay on debt in a timely manner to help raise your credit score again.
- Rent items to establish a better credit score. Experian has begun to include rental payments in consumers’ credit ratings.
- Apply for a secured credit card. You can open a credit card that requires a deposit, usually in the amount of $500 to $1000 to extend that same amount of credit. Avoid paying a high fee for this type of credit card and remain current with all payments.
- Ensure your credit report is accurate. Get a free copy of your credit report each year and check for errors. Immediately report any information you find that is incorrect.
- Establish unsecure debt with extreme caution. Many consumers fall back into the same trap of overextending themselves when they can open credit cards once again after a bankruptcy. Use debit cards and cash for most purchases to avoid the need for another bankruptcy.
Legal Counsel for New Orleans Bankruptcy
Different options and combinations of the above options work for different clients. Seek the expert legal counsel of the bankruptcy attorneys in New Orleans at Grand Law Firm. Call today to schedule your free consultation.