Florida Credit Repair Lawyer
How To Fix Your Credit After A Bankruptcy
At Nowack & Olson in South Florida, our lawyers have helped thousands of people eliminate debt, repair their credit and embrace a bright financial future. Responsibility, strategy and a commitment to our clients are the hallmarks of our credit repair services, contact our experienced Florida credit repair lawyers today.
What You Can Do
There are several things that are vital for you to know if you are struggling with debt and trying to rebuild your credit:
- Bankruptcy can be a first step in repairing your credit score. Many people fear that a bankruptcy filing will doom their credit, but that is simply not true. Your credit score is based heavily on a debt to credit ratio. Bankruptcy allows you to eliminate much of your debt, which lowers this ratio and raises your overall score.
- Make a commitment to credit repair after bankruptcy. There is no quick fix to bad credit. It takes time, diligence and hard work to repair your finances and free yourself from debt. Even with a bankruptcy filing, you may have to make lifestyle changes to maintain the positive impact on your credit.
- Do not go to a credit counseling company or debt negotiation firm. It may seem appealing to negotiate your way out of debt, but you rarely get what you pay for with these companies. In addition to spending money on something that does not yield results, you may experience a severe knock to your credit score.
Rebuilding Credit after Bankruptcy
Some people worry that filing for bankruptcy will ruin their credit, but credit worries should not stand in your way of obtaining effective debt relief. If you are considering bankruptcy, your credit is probably already not in the best shape it could be in, and getting deeper in debt and further behind on your bills isn’t going to make it any better.
Even if your credit score takes a hit because you file for bankruptcy, there are actually several steps you can take to start rebuilding your credit immediately. By adopting a few simple measures and getting the enormous benefit of becoming debt-free through bankruptcy, you can put yourself on the path to a healthy credit score and all the advantages that come with it. Read on to learn about how to start rebuilding your credit, and contact Nowack & Olson for a free consultation with a team of dedicated and experienced Plantation bankruptcy lawyers.
Apply for a Credit Card
Don’t be surprised if you get flooded with offers for new credit cards soon after you file for bankruptcy. While you may think you are a bad credit risk, credit card companies are often eager to extend credit to someone coming out of bankruptcy, because they know you now have a better debt-to-income ratio and can better afford to keep up with monthly payments. Take advantage of these offers to start rebuilding your credit score by establishing a good payment record. Paying your balance each month, or even carrying a small revolving balance while making payments on time will improve your score over time.
If for some reason you don’t qualify for a major credit card, you can still start to rebuild your credit with a secured credit card. By charging to this card and paying off the balance every month, you will start to rebuild your credit and soon be eligible for an unsecured card.
Of course, you need to be careful about obtaining new cards after bankruptcy, especially if out-of-control credit card debt was a substantial factor in your bankruptcy. Don’t get too many cards, and don’t overcharge. Use what you learned in the credit counseling that came with your bankruptcy filing.
Monitor Your Credit Report
Debts that get discharged in bankruptcy may still show up as overdue on your credit report, dragging down your score. There are three major credit reporting agencies in the U.S. – TransUnion, Equifax and Experian. Check your credit report with each agency, and contact the company directly if you spot any errors. There are many credit monitoring services you can subscribe to (and pay for), but it is important to know that under federal law you are entitled to receive one report annually from each of the three major agencies at no charge. If you request your free report from a different company every four months, you will be able to continually monitor your credit report at no cost. Visit www.annualcreditreport.com to request your first free report.
Stay on Top of Your Bills
Even after exiting bankruptcy, you will still have monthly bills to pay, be it rent, utilities, car payments, mortgage payments, etc. Paying these bills on time will accomplish two things which will improve your credit score: 1) you will lighten your debt load by owing less, and 2) you will start to establish a clean payment history. Late or missed payments are black marks on your credit report, but a history of on-time payments can help balance them out.
Don’t Wait to Rebuild Your Credit, Contact Our Plantation Credit Repair Lawyers Today
The first step to climbing out of debt is to meet with one of our experienced and successful Plantation credit repair lawyers for a no-cost initial consultation. We’ll let you know how we can help you rid yourself of debt and get on track toward rebuilding your credit and getting a credit score you can be proud of. Call 866-907-2970 to schedule your appointment today, or contact us online to get started.
