Choosing To Change Your Finances

Tips To Help You Improve Your Credit After Bankruptcy

by Luis Hawkins

Filing for bankruptcy can adversely affect your credit score, and these effects can linger for years. If you are worried that you will never qualify for a loan again after you file, you might want to talk to your lawyer about it. Your lawyer can provide great tips and strategies to help you find ways to improve your credit after filing. Here are several tips you can use for this purpose.

Take Notes and Be Alert During Your Credit Counseling Courses

Your bankruptcy lawyer will tell you about the requirements for filing for bankruptcy, and one of these is completing two credit counseling courses. Many people take these courses without paying any attention to the material, and as a result, these individuals learn little. If you want to find out how to improve your credit after bankruptcy, pay attention during these required classes. Take notes while you watch the videos and apply the principles into your finances right away. You do not have to wait for your case to end before you use these principles. If you start now, you will likely improve your credit and finances much faster.

Get a Credit Card and Use It Properly

Another thing your bankruptcy lawyer might tell you is to get a credit card after filing and use it properly. If you are heading towards bankruptcy right now, you probably have a lot of credit card debt. It is not hard to fall into large amounts of credit card debt, but it is hard to get out of this debt. If you want to improve your credit and finances after bankruptcy, a credit card can help if you use it correctly.

The correct way to use a credit card is to make small purchases with it each month and pay the balances when you receive the statements. If you do this, you will build a positive repayment history on your credit report, yet you will avoid falling into debt.

Cut Your Spending

The other tip your bankruptcy lawyer might explain is to cut your spending. If you only spend money on necessary purchases, you will have extra money on hand. You can place this money in a savings account for emergencies, and you will never have to worry about getting in debt again.

If you are interested in filing for bankruptcy and want to make sure you can improve your credit after, talk to a bankruptcy attorney. People who file for bankruptcy do experience credit damage, but the damage is temporary.