Rebuilding Your Credit After Bankruptcy is Possible
If you have filed for bankruptcy in Tennessee recently, you’re not alone. Statistics show nearly 1.2 million Americans went bankrupt in 2012 alone. But now that the process is over, how will you rebuild your credit?
Rebuilding your credit in Nashville is a common question after bankruptcy. Some assume their financial life is doomed for the next 10 years after filing. However, by taking a few tips into consideration, you can ensure your bankruptcy does not seriously damage your future credit.
One of the first steps is to get your credit report from the three primary credit bureaus. Make sure all debts included in your bankruptcy are in the report. Check closely for mistakes, such closed accounts with a status of open. If you find errors, dispute these with the credit agencies and make sure they are corrected.
Next, build some new credit. This may seem daunting and hopeless after a bankruptcy filing, but it’s possible – and necessary. Developing credit is an essential step in restoring your credit score. You can begin by obtaining a secured credit card. Because these cards require a deposit, most people are usually approved. Your new credit line will equal your deposit. At the same time, start an emergency fund. This means having at least three to six months of financial reserves in the case of an emergency.
Lastly, one of the most important parts of rebuilding your credit in Nashville after bankruptcy is paying your bills on time. Payment history consists of 35 percent of your credit score. Pay bills by the due date or before to begin racking up positive credit. In addition, strive to pay off credit balances each month and do not charge more than 30 percent of your credit limit.
With a little effort, time and dedication, you can build your credit back after bankruptcy and ensure your financial future is bright. If you are considering filing for bankruptcy protection, contact an experience Nashville bankruptcy attorney for sound legal guidance. Trust the bankruptcy attorneys at Nashville’s premier bankruptcy law firm, the Nevin Law Firm, to help you weather the storm. Our attorneys ensure you know every option available and how to best preserve your credit and protect your financial future. Contact us at (615) 244-7708 or online today