5 Ways To Improve Your Credit Score After Bankruptcy

The purpose of bankruptcy is to help you get a fresh start, provide you with an incentive to work, earn money, pay taxes and take care of your family. Part of that purpose is rebuilding your credit after your bankruptcy case is over.

When it comes to rebuilding your credit, bankruptcy isn’t any harder to overcome than foreclosure, short sale or divorce. It’s just a matter of how proactive and dedicated you are to repairing your credit. In fact, the best things you can do to rebuild your credit score are the same things you should be doing to maintain a good score.

Here are five ways to repair your credit score after bankruptcy:

• Pay bills on time. Your bill-paying habits make up 35 percent of your credit score. Put as many bills as you can on auto-draft, or set up reminders using online banking or your smartphone if you tend to forget when bills are due.
• Apply for credit cautiously. You have to have credit to build credit. If you don’t have a major credit card after your bankruptcy, get one, use it carefully and pay the balance off each month.
• Don’t close accounts. Closing your accounts reduces the amount of credit you have available to you, and will lower your credit score. If you don’t feel like you can keep from using an account, destroy the card, but don’t close it.
• Know your limits. Use credit cards wisely—know your limit and don’t go near it. Save them for purchases that you can immediately pay off or pay off quickly.
• Review your credit report regularly. Review your credit report often after a bankruptcy to stay familiar with your credit score, to make sure discharged debt is removed from your report, and to ensure there are no errors. You also want to make sure that the reports from all three of the major reporting agencies are the same.

Over the past 34 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can review whether bankruptcy may help stop your garnishment and address your debts through a repayment plan. Sources: 11 U.S.C. § 362(a)–(d); U.S. Courts: Chapter 13 bankruptcy. If money has already been garnished, recovery may be possible in some cases, depending on the timing of the transfers, applicable exemptions and other legal requirements. A refund is not automatic or guaranteed. Sources: 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i); 11 U.S.C. § 550(a). But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.