Credit Tips for After Bankruptcy
Filing for bankruptcy can have many affects on your credit. There are some things that you should do after bankruptcy to work on getting your credit back to a good place. Here are some tips for those who have filed bankruptcy to work on their credit.
First and foremost you need to get a copy of your credit report. Take some time to look it over. Are there any errors? If you answered yes to that, then you need to contact the credit reporting company that you got your credit report from and report the error. Then you should check other credit reports from other credit reporting companies. Look to see if they have the same error on them.
After you file bankruptcy it is very important to make sure that you pay all of your bills on time. You will never be able to build your credit back up if you pay your bills late. If you have trouble remembering when your bills are due, you can set a reminder in your phone, or write it down on a calendar that you look at every day. This will help you to remember to take the time to pay the bill.
Do not close your bank accounts. It may seem like a good idea right after you file bankruptcy but it is not. You will want this account to pay your bills and keep a positive balance. This will help you build up your credit, as long as you do not overdraw your account.
Know what your personal spending limits are. There are different ways that you can do that, but a budget is the best way. When you have filed bankruptcy, you need to make sure that you have a functioning budget. This will help you not to over spend. After you file for bankruptcy you need to be even more careful with your money.
A while after you have filed for bankruptcy you can try applying for a loan or a credit card. The goal here is not to get into more debt than you can handle, but to start building your credit, and show that you are able to make your payments. This will help you down the road when you need another loan or are applying for another credit card. Try not to do this too soon. If you do then it could negatively affect your credit report. If you wait the appropriate amount of time then you should have no problem getting a small loan.
After you have filed for bankruptcy, the way you handle your finances needs to change. It is obvious the approach you had to your finances before will not work in the future. Take your time when you are figuring out how to manage your finances. Do not rush through it or you could end up in financial trouble again. You will be happy down the road if you take your time with your finances now instead of rushing through it all.