Now that you have your fresh start, here's how to get your good credit score back.
1
Don't Keep Debt You Can't Afford
Some people try to keep homes or cars with payments they can not afford. They often find themselves in trouble again after discharge. When you file bankruptcy that is the time to take a realistic look at what you can afford. Especially if you owe more than your home or car is worth, seriously consider surrender.
2
Make Secured Payments On Time
If you have a home, car or other secured loan be sure to make each payment on time. You want to avoid any post bankruptcy hits to your record.
3
Avoid New Debt
Avoid taking on new furniture loans or other consumer debt that will harm your income to expense ratio. That way when you are ready to apply for a home or car loan you have plenty of income to make the payments.
4
Use Debit Cards Instead of Credit Cards
It's a myth that you need to go out and start a new credit card again right away. Banks know you can not re-file a Chapter 7 bankruptcy for 8 years. So you are a good credit risk right after discharge. In my practice the biggest problem by far is clients who get back into heavy credit card debt in less than 8 years.
5
Keep Steady Employment
Banks like customers who have steady employment. Changing jobs often and/or significant periods of unemployment make us less credit worthy. About two years post discharge banks will often be ready to give you a good interest rate on a home.
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