Understanding How to Get Credit After Bankruptcy
Credit tips for after bankruptcy from trusted Los Angeles attorneys
One of the biggest concerns people have is what will happen to their credit score after they file for bankruptcy. What many people do not realize is that when comparing your credit score immediately before filing for bankruptcy to your score only one year later, discharging debt through bankruptcy actually improves your credit. However, because the initial filing does have a negative impact on your credit score, there are steps you can take to start rebuilding your credit immediately. For more than 30 years, the Law Firm of Michael Jay Berger has helped people like you get out from under the burden of debt and begin re-establishing your financial future.
Four steps to building better credit
Credit is like trust. It is easy to lose and cannot be rebuilt overnight. It won’t be easy at first, but by understanding how bankruptcy works, you can banish bad money habits and improve your standing with the three major credit bureaus. You can do this following these credit tips for after bankruptcy:
- Budget your essentials. Before you can start putting aside money to rebuild credit, you need to determine how much money you absolutely need per month. Essentials include housing, food, utilities, transportation and medical expenses.
- Pay your bills on time. Get into a routine of paying your bills when they are due. Make a schedule, create reminders or set up automatic payments a few days before the bill is due.
- Get a secured credit card. Secured credit cards are similar to debit cards. By paying the money beforehand, you avoid the risk of overspending. Your payments are also reported to credit agencies and will begin to improve your score over time.
- Get a retail or gas card. Although it seems risky, it is important to show credit bureaus that you are responsible with money. A gas card is smart because it is a necessity that you can’t necessarily splurge on.
Supporting you before, during and after bankruptcy
My firm understands that filing is only a piece of the bankruptcy puzzle and that legal advice is beneficial at every stage of the process. How you proceed moving forward is just as important as how you got there in the first place. Small steps such as budgeting may seem to get you nowhere but, in truth, they are helping you create better financial habits that lead to a better financial future.
I can show you how to rebuild your credit after bankruptcy. Contact me today.
When you are in dire financial straits, you need a bankruptcy attorney who knows the law, knows the system and knows you. Located in the heart of downtown Beverly Hills, I provide a wide range of services for individuals and families suffering from the weight of excessive debt. Call the Law Offices of Michael Jay Berger at 310-271-6223 or contact me online to schedule a free consultation.