After going through a bankruptcy, rebuilding credit may be difficult but it’s not impossible. For the millions of people with a bankruptcy on their record, a few simple steps can help build up a credit score again. Here are 10 ways to rebuild your credit after filing for bankruptcy in Louisiana.
Before you can start cutting your expenses, you must first figure out what you’re spending money on. You should track your expenses for three months to see where your money’s going. You can use your findings to start crafting a realistic budget.
Think Cash First
When you use cash, you’re physically unable to spend more than you have. If you need to buy something expensive, save up rather than using credit. Getting into the habit of thinking cash first can prevent overspending and help you stay out of debt.
Monitor Your Credit
The only way to know if a credit score is improving is to look at your credit report. Everyone is entitled to one free credit report from the three major credit bureaus once a year. You can review your report and report any inaccuracies to the FTC.
Obtain a Credit Card
A credit card is a quick and easy way to establish credit. After a bankruptcy, you can look for secured or unsecured cards for rebuilding your credit. By keeping your account in good standing you can slowly start improving your credit score.
Use a Line of Credit
Having a credit account means nothing if you don’t use it. To ensure that you do not fall back into debt, only purchase things that you can afford and pay off your balance before it starts accruing interest.
Build Long-Term Relationships
Getting new cards over and over again can hurt someone’s credit record. Instead, focus on building a track record with just one or two cards.
Pay Things on Time
The best way to rebuild credit is to pay bills on time. Overdraft fees can show up on your credit report and lead to possible legal issues.
Wait on Buying a Car
Even if the dealership will lend you the money, it is better to wait a few years before buying a car. Vehicles are expensive, plus auto loans will have a higher interest rate for someone who has a recent bankruptcy. Wait at least two years before buying a vehicle.
Go for the Human Touch
A computer program might decide that someone should not get a loan, but a human being could give a different answer. The financial industry has a surprisingly human side to it. Individuals can get a second chance at a loan by honestly explaining the situation to a real person. Just be sure that you are financially stable enough to pay off the loan in a timely manner.
Skip the Scams
Unfortunately, there are a lot of scams out there. Be wary of anyone who promises to fix your credit score after a bankruptcy. Credit scores won’t grow overnight, so anyone who offers a fee for an instantly better score is running a scam.
Making a comeback after going through with a bankruptcy can be difficult, but with the help of a knowledgeable bankruptcy attorney, the process can be less intimidating. E. Orum Young Law Offices has filed the most bankruptcies in Northeast Louisiana hand continues to help struggling consumers improve their finances. We are here for you throughout and after the bankruptcy to help for a smooth process. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.