Tips for Rebuilding Credit after Bankruptcy

Tips for Rebuilding Credit after Bankruptcy

Colorado bankruptcy can be the first step towards resolving serious debt issues. After the bankruptcy process, however, there are additional steps that people may need to take in order to get their finances back on track and to avoid falling back into substantial debt again.

And, in many cases, rebuilding credit is one of these steps. For those who are working improving their credit following a Colorado bankruptcy case, here are some powerful tips to keep in mind:

  1. Take out a few secured lines of credit – You have to have credit to be able to demonstrate that you can use and manage it responsibly. And a consistent pattern of responsibly using credit can be integral to improving your credit score following bankruptcy. So, take out one or two lines of secured credit following your bankruptcy case. Although these lines of credit may be associated with higher interest rates, overtime, it can be possible to get these rates reduced so long as you consistently pay your credit bills.
  2. Limit your charges to your new credit lines – In other words, do NOT charge more than you can afford to pay off each month. Carrying a balance on your credit cards from month to month can sabotage your efforts to improve your credit. If you rely on credit to make certain purchases each month, having a monthly balance can be the start of snowballing debt (as you dig deeper into debt month by month).
  3. Keep a close eye on your credit report – Get in the habit of regularly checking your credit report. During these checks, be sure to look for any suspicious debts, including those that should have been wiped away by bankruptcy and/or those that you may not have incurred yourself. Also, keep an eye on the debts you do having, making sure that your payments have been accurately applied to them (and that there are not any erroneous notes regarding late or missed payments).
  4. Make a plan to stay the course – In other words, plan for success by putting yourself on a budget and sticking to your financial plan for the long term. It can take months (or possibly longer) to rebuild credit after bankruptcy, and staying the course is key to ensuring that your efforts pay off – and that you achieve the financial fresh start you have been working towards.

Contact the Denver Bankruptcy Lawyers at Garcia & Gonzales, P.C.

Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy lawyers at Garcia & Gonzales, P.C. to provide you with experienced help and honest answers about your best debt relief options.

Contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page to find out more about how we can help you.

When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.