Restoring Your Credit after Bankruptcy
After filing for bankruptcy, you may feel as though your credit is destroyed and you will never be able to restore it to a good status. This, however, is not true. There are steps you can take to regain your freedoms to take out loans and make large purchases. Typically, though, it will take time for you to successfully rebuild your credit. The first step in the process is accepting this fact.
In order to build your credit back up, you will need to get a credit card, charge items on it, and then pay your bills off on time. Most banks will not approve you for an unsecured credit card after a bankruptcy filing. However, you should be able to get a secured card. By using this card and paying off all of your debts on time, you will indicate to lenders that your financial habits have changed.
Take out an installment loan, and pay it off on time. It may be difficult to be approved for one right after bankruptcy, so you may have to wait for a period of time before you can take this step. You should also expect to pay high rates, at least in the beginning, because of your past credit history.
By taking these steps, you can restore your credit rating over time and regain the freedom to take out loans and open up credit cards. You may have the mark of bankruptcy on your credit history, but your ability to change your habits should make an outstanding statement to creditors.
If you would like to learn more about restoring your credit, or if you are considering filing for bankruptcy, then Birmingham bankruptcy lawyer Paula Greenway can help you. Contact her today at (205) 324-4000 to schedule a free initial consultation to discuss your concerns.