Repairing Credit After Bankruptcy in Oklahoma City, OK
Filing for bankruptcy in Oklahoma helps you get a fresh start after suffering from mounting debt. Many people think that filing bankruptcy will give you trouble rebuilding your credit, especially if you’ve had a bad credit score before you filed bankruptcy. However, some practices can help you increase your credit score even if you have a bad credit history. This article will show you how to repair your credit and improve your credit score fast.
While most bankruptcies can stay on your credit report for up to a decade, getting rid of your bad credit score isn’t impossible. It has a more negligible effect on your credit standing over time, and it is highly likely that you already have a bad credit score before filing bankruptcy. You might even get a higher credit score a year or two after filing bankruptcy than what you originally had before filing.
Whether you filed for Chapter 7 or Chapter 13, you must plan. You need to figure out how you will improve your credit and avoid getting another bad score.
While banks and lenders may not want to trust you right away, this can change by rebuilding your credit score. Get a good standing and prove that you can be financially responsible again.
For starters, you can borrow small amounts of money. This will help you get better credit scores by paying your loan on time.
Here are other tips to help you improve your credit:
Always Check Your Credit Report
Bankruptcy effectively wipes out your debts but can harm your credit score. Filing bankruptcy will be reflected on your credit report, so you need to check your credit report right after filing. Your credit score after filing bankruptcy will be your starting point in rebuilding your credit.
Get a Secured Credit Card
You can also improve your credit score by applying for a credit card. A secured credit card allows you to charge purchases against a deposit. Secured credit cards are ideal for people with money deposited as collateral for their loans because you can manage your debts more responsibly, avoid high-interest rates, and keep your loans from ballooning.
Get a Checking Account
Sometimes, filing bankruptcy can affect your loan application. It can be rejected after a bank or creditor sees your record of filing bankruptcy. Getting a secured credit line through a checking account can help you avoid this problem. Because you are already a client of theirs, you will be more likely to be approved.
Ask Someone To Co-sign a Loan Application with You
Getting a loan with someone as a co-signee is a great way to improve your credit score. However, while a co-signer is there to help you if you cannot pay your loan on time, you are still responsible for ensuring that you can pay it on time.
Talk to an Experienced Bankruptcy Attorney
Getting a fresh start is a privilege you should never take for granted. Our Oklahoma City bankruptcy lawyers can give you legal advice and help you effectively improve your credit score.
At Scott Harris Law, PLLC, we have trusted bankruptcy attorneys who can help you with your Chapter 7 bankruptcy, Chapter 13 bankruptcy, or Credit Score concerns. Schedule a consultation with us today!