Post-Bankruptcy Credit Advice

You may be surprised to learn that bankruptcy doesn’t damage your credit, but actually improves it. Why? Because removing negative account histories and large debt balances wipes the slate clean, giving you a chance to rebuild a fresh credit history. However, establishing good credit takes time and effort on your part.

Do Your Part

If you have recently exited bankruptcy in Tampa, check your credit report. Chances are that some of your old creditors may not have updated your account information with the credit reporting bureau.  If you find any accounts that are inaccurate or do not reflect your new debt resolution, file a request to have the information updated.

Next, consider your future of credit. Now is the time to use credit to your advantage as a tool for establishing yourself as a reliable borrower, not for convenient purchasing. Before you apply for new credit, plan out your budget and determine what you can afford to pay for in  a monthly balance. Ideally, you want to keep your purchases below 40 percent of the total available spending limit on a card to get a quick credit score boost.

Once you have planned your credit use, begin shopping around for a new line of credit. There are plenty of lenders willing to give credit to post-bankruptcy consumers, especially those who completed a Chapter 13 case. However, these lines of credit may not carry the most favorable terms. Look for a line of credit with the lowest interest rate and fees. You may have to compromise with a lower spending limit too get these terms, but it is worth it in the end when your credit score begins to climb.

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