One of the biggest concerns many individuals have when it comes to filing for bankruptcy is how it will affect their credit score and what can be done to rebuild it once it is diminished. Bankruptcy is rather beneficial for some individuals as it can help give them a “clean slate” when it comes to debt owed. But, getting this “clean slate” will come at a price as that could be your credit score plummeting. So, if you are looking to file for bankruptcy but want to understand what you can do to help rebuild your credit, some tips are provided below. Our bankruptcy lawyers in Washington can also provide you with some valuable information when it comes to credit and how to rebuild it.
- Get a secured credit card- According to credit.com, obtaining a secured card is a good way to begin rebuilding your credit once your bankruptcy is finalized. If it hasn’t been discharged yet, you might get turned down for it so it may be better to wait. But, once you are able to obtain a secured credit card, be prepared to have annual fees and/or high percentage rates. Once your credit score begins to increase, more credit card options will start opening up and you won’t have to pay to have a card any longer.
- Obtain a retail card- Once you get a secured credit card and have been making your monthly payments on time, you might want to consider sending in an application for a department store credit card. Their requirements are usually more lenient so you have a better chance of being approved. Having a department store credit card will only add to the increase in your credit score as long as you keep the balance low and pay on time.
Credit plays a major role in today’s society. You need credit to get a home if you want financial assistance with the payments, lenders use your credit score to determine how much they will lend you and at what interest rate, and your credit can even affect your job opportunities. But, if you are just getting through a bankruptcy, it is important that you tread carefully when opening up new cards. The last thing you want to do is get over your head in credit card bills and wind up not being able to pay them down.
Have a Bankruptcy Question in Need of Answering?
While rebuilding your credit is one step after getting your bankruptcy discharged, you might not be at this stage yet. Perhaps you are interested in filing for bankruptcy or have some questions and concerns as to whether this option is right for you. Whether you have a question or want help deciding whether you should file for bankruptcy or not, it is advisable that you consult with a Washington bankruptcy attorney today as they can provide you with all that you need to know.
The bankruptcy process is a complex one and there are different options you need to be aware of. Therefore, give us a call today and one of our bankruptcy lawyers will provide you with all there is know so you can make an informed decision regarding whether to file for bankruptcy or not.