Statistics reveal that in 2017 more than 700,000 people filed for bankruptcy. While it is true that a bankruptcy can remain on a person’s credit report for up to 10 years, there is no reason for a person to wait to begin taking steps to reduce the negative effects of bankruptcy.
Instead, if you have a plan and follow it responsibly, it is possible to recover from bankruptcy much more quickly than 10 years. With the assistance of a skilled bankruptcy attorney, you can even create a strategy to quickly build up your credit.
Use a Secured Credit Card to Raise Your Credit Rating
After bankruptcy is discharged, many people benefit from opening secured credit cards that do not charge annual fees. As these people rebuild credit, it is a wise idea to place at least one charge a month on the card. Once the credit card statement is received, you should then make sure to pay off your balance each month on time.
Using a credit card in such a way is one of the easiest and quickest ways that you can improve your credit rating.
Join a Free Monitoring System
To make it easier to understand the pace at which your credit score is increasing, it is a wise idea to sign up for a free service like CreditKarma or MyLendingTree. These services make it easier to monitor improvements in your credits and also help to combat against potential identity theft. After your credit score climbs above 700 or sometimes even higher, you will begin to receive mainstream offers.
At this point, many people benefit by switching from secured to unsecured credit cards. During this phase, it is critical to avoid repeating any mistakes that led to bankruptcy in the first place.
Avoiding Past Mistakes
It is critical to avoiding bankruptcy again in the future to understand how your bankruptcy occurred and never making these mistakes again. Some people report the loss of a job or unexpected medical expenses as the reason for declaring bankruptcy. For other individuals, the reason that they overspend or spend money in an unwise way.
By creating a financial plan and adhering to a written budget, you can make sure that you continue to stay within your financial means. Before long, you will have a good enough credit rating to be approved for a mortgage and other types of loans.
Speak with a Bankruptcy Attorney Today
After just a few years of following recommended steps, many people find that their credit score improves and that they have a second chance to build a good credit rating.
If you need the assistance of an attorney during any part of the credit recovery process, you should not hesitate to speak with a seasoned bankruptcy attorney like Jim A Lyon, who has helped many other individuals navigate the bankruptcy process and knows what it takes to make sure that you have a second chance to rebuild your credit score.