Yes, improbable though it sounds when you are struggling to accept that you are bankrupt, it is possible for you to rebuild your financial health. There are many things you could do to reinstate your credit worthiness. Bankruptcy is a difficult time but it can serve to shore up fiscal discipline and ultimately help you put out new shoots.
Rebuilding your credit score is the first step
Optimally, you should start by accessing your credit score which is available from the top three credit rating companies. It is a good idea to check the report for any errors. Rebuilding your credit score is all about starting from the very basics of financial discipline. It is imperative that you pay your bills diligently. Always aim to spend only what you can afford to pay immediately.
Do find a credit card that is compatible with the credit rating companies and pay off the entire spend on it every single month. It is a good beginning if no interest piles up again. This will gradually shore up your credit scores. It is a natural instinct to steer clear of credit immediately after you declare bankruptcy. But this reluctance does not help at all. Spending responsibly is the lesson to learn. Rebuilding your credit score is only possible if you spend a small amount (maybe pay your utility bill) and repay in the stipulated time. You may boost your credit score by as much as 75 basis points in a year in this way.
Ways to build credibility
There are many ways that you can take to slowly build credibility.
- A new bank account denotes financial stability. It also provides you a fresh slate to start the climb back. You can opt for the Auto bill payment facility to ensure timely payment of bills. This is a good start to create a good rating.
- Please do apply for a secured credit card and use it wisely.
- Applying for and securing retail or gas card makes a lot of sense. These cards do not really need a great credit rating to be dispensed. They are used for essential needs are typically used to cater to people who have blemished credit to start with. The limited use is good to rebuild the credit ratings.
- It is important to pay all bills in full every month while you are trying to rebuild credit scores. The creditors regain trust in your ability to pay on time. Your risk level slowly moves from high to stable.
The best advice is always from a professional
Hiring a Westfield bankruptcy lawyer is one of the best decisions you can make in the initial bankruptcy negotiations. The dedication and sincerity of your legal counsel will extend to helping you restructure your financial goals too. Take their feedback on how to get things on track and breathe easy!