Rebuilding your credit after bankruptcy is crucial to develop a stable position in your financial future. Not just, credit counselling services, people must seek for many other ways to re-establish everything from scratch.
Are you tired of seeking help from Credit and debt counselling programs or advisors who offer Credit Counselling Service? After getting bankrupt, it’s time to think of easier ways to learn about some easy ways to rebuild credit that will surely open the gates to the right financial path. Always remember that your credit score will aid in showing potential lenders about your credit management strategies at any given time. You may have not managed it well in the past, but it is not permanent and you can always end this using extensive hard work.
Let us read further to understand the right steps that will help in improving this situation and rebuilding the credit score after Bankruptcy:
1. Examine the Present Situation and Take the Right Action: This call to check your Credit Score via the free service provided by your bank or other companies. You may even track your credit report that can be freely generated tools to assess your position credit-wise. Resolve any persisting errors if necessary.
Based upon your score and available budget, you need to segregate all your cash flow by using the 50/30/20 rule that classifies your needs, wants and Savings or Debts in the best way. Not just these three categories, try to get sub-classification for every single bill you need to pay. This way you can tailor your budget and needs in the perfect way. Also, include a new savings category called the Emergency funds that you may save for the future.
2. Refurnishing your Credit Using Appropriate Strategies: Bankruptcy may limit your credit options as lenders will not get convinced. Therefore, the best way is to opt for a Secured Credit Card facility. Like any other credit card, it functions the same, however, in this case, you will have to deposit funds that are equal to the desired credit limit.
Now take care of these given things before selecting the right Credit card for yourself:
• The Card Company must report to credit bureaus
• The card allows for a hike in credit limit
• The credit card gets converted to an unsecured credit card
• The card company refunds your deposit
• The credit card should not come with an annual fee
• The card offers several other perks and rewards
Also, going for a credit builder loan also helps to re-create your dingy credit score by taking a security upfront deposit and then, save that amount and lend you the required amount. Your security deposit will be paid back to after you pay off all the loan.
3. Give it Time to Re-establish itself:
After taking all the proper steps, you need to realize that your credit score will take a little extra time to get a significantly high score. Let some years pass, after three to five years, you can have a good credit score with zero impact by Bankruptcy.
This way you can get rid of your old debts and rebuild your credit score. Credit720 is working to safeguard your best interest by working similar to a Tax Consultant and manage your finances by providing a reliable credit counselling service in which we prepare a full plan for managing the debts of our clients wisely and save them from getting bankrupt.