Rebuilding Your Credit After Bankruptcy

Rebuilding Your Credit After Bankruptcy

November 15, 2019

Having good credit—or any credit at all—is a requirement of adult life in today’s world. After filing bankruptcy, you lose what credit you have, and many people are too scared to take the right steps to rebuild. After all, loans and credit cards are usually what got them into the mess in the first place.

However, it’s entirely possible to rebound from bankruptcy and strengthen your credit. The main goal is to make your payments in full and on time, which will help slowly rebuild your credit. We’ve outlined some of the main steps you should take to re-establish your credit in Montgomery County, TX:

  • Monitor your credit report carefully: Everyone should monitor their credit anyway, but this is especially true for those rebuilding after bankruptcy. Make a note of your credit score as you start rebuilding, then check it monthly to ensure that all payments are being reported properly. Review your credit report with the three major credit bureaus.
  • Create a budget: The key to making your payments on time and in full is to have a realistic and achievable budget. Sit down with a list of all your expenses, as well as the income you are currently earning, and decide how much you’ll have left over. Next, try to implement that budget and really keep a close eye on how you spend your money.
  • Start saving: One of the most common reasons people fall behind on their payments is emergencies. Life can throw unexpected situations our way, from hospital stays to vet bills to car repairs. Set aside as much money as possible per month to cushion any financial blows.
  • Get a secured credit card: Many people make the mistake of avoiding loans or credit cards after their bankruptcy proceedings, but this is the only way to achieve rebuilt credit in Montgomery County, TX. Secured credit cards require that the user send a cash deposit that the company will hold as a deposit, protecting them and making it more likely for you to be approved for a card. Be aware that credit limits are generally lower and fees are higher for those rebuilding their credit.
  • Consider a credit builder or co-signed loan: One last way to build credit is to get a special credit builder loan, or take out a co-signed loan with a trusted friend or relative. Similar to a secured credit card, these loans rely on deposited funds to protect the bank. On-time payments will rebuild your credit and allow you to withdraw the money as needed.

Rebuild your credit with a bankruptcy attorney in Montgomery County, TX

The path to financial recovery after bankruptcy can be confusing, which is why a great attorney can help guide you through the post-judgment process, too. James R. Jones, Attorney at Law specializes in Chapter 7 bankruptcy. We represent individuals and businesses seeking to release themselves from credit card debt, unsecured loans and other financial burdens. Call us today to find out our best post-bankruptcy credit tips in Montgomery County, TX.

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