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How to Build Credit After Bankruptcy

How to Build Credit After Bankruptcy

If you want to enjoy the benefits of starting with a clean financial slate after bankruptcy, here are ways on how you can rebuild your credit fast.

If you want to enjoy the benefits of starting with a clean financial slate after bankruptcy, here are ways on how you can rebuild your credit fast.

Start with a light debt burden

Aside from our credit file, lenders look into your debt to income ration to know if you have sufficient funds to pay off your financial obligations.  The lighter debt burden is, the more attractive you are to lenders. And because you cannot file for bankruptcy for the next eight years, lenders know that you cannot abscond from your financial obligation through bankruptcy. So, if you are able to prove that your income is enough to take out loans without compromising your other essential needs, they are likely to approve your application for credit.

Create a budget

If you want to stay on top of your finances and prevent falling into the same cycle that led you to bankruptcy, start creating a realistic budget that you can live by.

Build an emergency fund

if you don’t want to resort to high-interest loans and quick loans during emergencies, saving a little amount of money on a monthly basis can help. Debt often spirals because of unexpected expenses, especially when you have zero savings.

Build a good credit score

Even you are literally starting from scratch, take note that your creditors know your history and they are waiting for you to prove yourself this time. Always check your annual credit report. Read them to see the entries and how your financial decisions impact your credit rating.

It is obvious that your bankruptcy will remain in our report for a decade. But when you’re able to show that you have minimum to zero late payments and delinquencies, your credit report will reflect that too.

Clean up your credit report

Remember that utility providers and lenders will see them and it will serve as one the biggest basis of the approval of your credit applications.

When you struggle with bad credit because of inaccurate and incorrect entries in your credit report, your ability to travel is also affected. You may have issues in getting car financing and car insurance, and you may not be given a new credit card or line of credit to pay for your travel expenses and car repairs. It has big impact on your disposable income as well. When more than 50% of your income is being spent to pay off your bad debts, you may not be able to enjoy the simple luxuries that you are entitled to.

Clean Credit fixes thousands of incorrect or inappropriate negative entries into your credit report. If you think you are a victim of inappropriate or inaccurate credit listing, Clean Credit can fix these potentially debilitating credit issues. With a repaired credit record you can start building your credit rating up by implementing credit management strategies to achieve higher credit scores, in the near future. That means you can already lower your cost to borrow, live within your means, and pay all the bills wisely.

Contact Clean Credit today to find out more about “How to build credit after bankruptcy”.

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