Making the decision to file for bankruptcy can be one of the most difficult you will ever make. With so many conflicting reports about whether it is the best move for your financial future or not, it is hard to know if you are truly doing the right thing. While many people fear their credit is going to be ruined forever, that simply isn't the case. Rebuilding your credit is far simpler than you think. Check out these four ways to get your credit back on track.
Time for a little damage control.
Take a minute and go through your credit report with a fine-tooth comb. All of the accounts that were included in your bankruptcy petition should be showing as a $0 balance. Creditors that don't report the account correctly could be jeopardizing your credit score.
Get yourself a couple new credit cards.
One of the most important steps in the recovery process is to find a couple credit cards. If you aren't able to get one of the unsecured cards, get a secured card. It is better to start with something than to continue on with nothing at all. With a secured card, your limit is whatever you deposit with the institution. After making enough payments, you will often graduate into an unsecured card.
Maybe it's time to get a larger loan.
Within a few months of having your bankruptcy discharged, you can start looking for a mortgage or an auto loan. While a traditional bank might not welcome the loan, car dealerships, for example, will often have special financing departments that are more than happy to deal with you, especially when trying to make their quota for the month. With a mortgage lender, you might need to wait a couple years to prove you are on the right track before being able to get a standard loan.
Time for a piggyback ride.
If you have a family member you can trust, you can see about getting added on as an authorized user on a credit account of theirs. Not only will you get all of the credit history for that account transferred to your record, but it won't affect your family member's credit at all.
By utilizing the tips above, you can be on your way to a healthy credit score in no time. Depending on how much debt you had, filing bankruptcy can actually cause your credit score to rise. Find out more by speaking with a licensed attorney like David M Lowe Attorney At Law today.