Helping With Your Financial Future

How to rebuild your credit score after a bankruptcy

On Behalf of | Dec 16, 2020 | Uncategorized

Once you’ve finalized your bankruptcy in California, rebuilding your finances might seem impossible. Your credit score has tanked, your savings have been wiped out and you have few financial assets. But it’s not impossible to rebuild your finances — it just takes time. Here’s how you can get your finances back on track after your bankruptcy.

How can you rebuild your finances after filing for bankruptcy?

Bankruptcy law might have allowed you to keep some of your assets during your bankruptcy, but most of your loans are gone. You’ll need to open another line of credit so that you can start rebuilding your credit score. However, most lenders are hesitant to give money to someone with a low credit score.

Fortunately, you can apply for a secure line of credit to start repairing your score. You can talk to your bank and see if you qualify for a secured loan. These loans are backed by money that you’ve deposited or tucked away in a savings account. Once you’ve paid off the loan, the bank will send a report to credit bureaus to help you raise your credit score.

If you’d prefer to use a credit card, you can also apply for a secure credit card. You’ll have to pay a deposit first so that the lender knows that you have the money. If you get approved for one of these cards, you can start gradually raising your credit score. Just be aware that you might be rejected, which can cause your score to drop.

To boost your credit score, you can get a friend or family member to co-sign on a new credit card. Using this card responsibly could help you start building your credit again. However, since you’ve filed for bankruptcy in the past, your loved ones might be reluctant to co-sign on a credit card with you.

Can an attorney help you file for bankruptcy?

An attorney could help you make it through bankruptcy with as many of your assets as possible. They could also help you prepare for your financial future and start rebuilding your credit after your bankruptcy is finalized.