How Can I Rebuild My Credit After Filing for Bankruptcy in South Carolina?
You can rebuild your credit after filing for bankruptcy in South Carolina. What many people misunderstand is that, by the time a person considers bankruptcy, most people have a poor credit score already. Rebuilding credit is usually faster after a bankruptcy than if you don’t do anything at all to alleviate the debt. It is possible by making timely payments, adopting sensible financial habits, and managing your credit wisely, among others. However, you need to be determined, patient, and consistent.
If you are having a difficult time rebuilding your credit or have no clue how to start, it’s in your best interest to talk to a reliable Columbia, SC bankruptcy lawyer. They can give you valuable insights into how you can improve your credit to help ensure you get the most out of the bankruptcy relief you received and work towards maintaining your financial freedom. In the meantime, consider the following strategies for rebuilding your credit after filing for bankruptcy in South Carolina.
Examine Your Credit Report Thoroughly
While you won’t be liable for the debts that were discharged in your bankruptcy case, you should still ensure the information on your credit report is updated and accurate. After receiving your bankruptcy discharge, you should get a copy of your report to confirm that your discharged debts are marked “discharged” or “included in the bankruptcy.” If you find any discrepancies, promptly dispute them with the credit reporting agencies to ensure the information in your report reflects your current credit standing.
Build and Maintain a Positive Payment History
One of the top requirements for having a good credit score is a positive payment history. You should start repairing your credit by always paying your bills on time. Timely and regular payments will show creditors that you’re financially responsible, which will help increase your credit score over time and ensure positive creditworthiness in the future.
Resist The Urge to Take On New Debts
You may be tempted to apply for loans or multiple credit cards after having your debts discharged through bankruptcy. However, taking on too much new debt could negatively affect your score, particularly if you default on the loan or fail to manage your credit card payments. Focus on improving your credit score one step at a time, and don’t overextend yourself with too much debt, or you’ll find yourself in dire financial straits once again.
Obtain a Secured Credit Card But Use it Responsibly
Having a secured credit card is among the simplest and most effective ways to fix your credit after bankruptcy. You can use a secured credit card just as you would a regular card, but your deposit is your credit limit. The key is to use it wisely by paying the bill in full monthly and keeping your balance low. A low utilization ratio will show creditors and lenders that you are not heavily reliant on credit and can handle credit responsibly, which will help increase your score over time.
Talk to Our Seasoned Columbia, SC, Bankruptcy Attorney for Solid Strategies to Rebuild Your Credit After Bankruptcy
There are simply no secrets or shortcuts to rebuilding your credit after filing for bankruptcy. It will not happen overnight. However, staying consistent with your positive financial habits will get you the results you need to regain control of your finances. For more financial tips or bankruptcy advice, arrange your free consultation with our Columbia, SC, bankruptcy lawyer at Reed Law Firm by calling our office or contacting us online.
