Bankruptcy creates a fresh opportunity to rebuild your credit. By getting rid of excessive debts, bankruptcy will give you a much lower debt-to-income ratio, which in turn can serve as a foundation for gradually improving your credit.
For comprehensive guidance on all aspects of bankruptcy — including rebuilding your credit — contact the law firm of Patton & Knipp, LLC. Our attorneys provide complete bankruptcy services, addressing not only the bankruptcy process itself, but also post-bankruptcy issues. This valuable post-bankruptcy guidance comes at no additional charge.
How To Improve Your Credit: Three Simple Steps
Rebuilding your credit doesn’t have to be a burdensome, decades-long process. As soon as your debts get discharged, you can start improving your credit by following several important strategies.
1. Dispute inaccuracies in your credit report.
Your credit report will determine which lending options are available to you and which rates apply. However, credit reporting agencies do not always accurately update these reports following bankruptcy. Your report may still reflect a high debt-to-income ratio and old debts that have already been discharged.
As part of our Complete Bankruptcy approach to legal guidance, our attorneys also offer credit repair guidance. We will closely examine your credit reports and dispute any discrepancies. We will make sure you have a clean financial slate.
2. Re-establish your credit through consistent monthly payments.
Using credit cards wisely is a key to establishing reliable credit. If you still have a line of credit available after bankruptcy, you can continue to make small purchases with it, paying off the balance in full each month. Alternatively, you can apply for a secured credit card.
3. Adhere to a strict budget.
Making smart financial decisions is the swiftest path toward financial security. After bankruptcy, one of the first steps you should take is to prepare a detailed budget. You should also work toward building a sufficient cushion of savings. You can rely on our attorneys for advice and tips specific to your situation.