After filing for bankruptcy, you may notice that it is difficult to get a loan. Bankruptcy can seriously hurt you credit score. It stays on your credit report for up to 10 years from the date you file. However, just because you have a bankruptcy on your record does not mean that you are shut out of the market for an entire decade. As a matter of fact, during those 10 years, it is possible to build a decent credit score while you wait for the bankruptcy to fall off your credit report.
You may even be able to build your credit up to a respectable level within three to five years. That might, however, be easier said than done. Here are some tidbits of advice to help you repair your credit enough to obtain a loan after bankruptcy.
- Follow your credit score closely. Once the bankruptcy is complete, request copies of your credit report from the three major reporting agencies. You need to make sure that the reports are accurate.
- Pay your bills on time. Building a positive payment history will help offset the effects of the bankruptcy on your score.
- Shop for credit. If you don’t have any open accounts, try to open a secured credit card or a credit-builder loan. Don’t go crazy – keeping one account with a low balance is enough to get the ball rolling on repairing your credit.
Our law firm is experienced in helping people dig themselves out of financial struggles. Call us for a free consultation to figure out if bankruptcy is the best option for you.