Article provided by: Law Offices of Daniel J Guenther
Personal bankruptcy is a severe setback with serious weakening effects. It is common for more than 500,000 people in the US to file bankruptcy every year. The good news is that most people recover fast and learn how to reorganize their debt to seize the best opportunity. It is more empowering to think of bankruptcy as the new trigger for a debt-free life and join the multitude of people who successfully apply for a mortgage within two years of filing the Chapter.
What is your credit score after bankruptcy?
The credit score will hit after bankruptcy, even if you have the perfect score. The case sends signals to lenders that your financial case may be too vulnerable for your status. A Chapter 7 bankruptcy will smear the credit report ugly for up to a decade, while a Chapter 13 bankruptcy will hurt the score for approximately seven years.
Repairing the credit after bankruptcy
The sight of a hurt credit score easily scares business investors. Recent actions will have a more considerable impact than old money expenditures. The best way to improve credit score is to make timely payments. It would help if you had several different solutions to relieve yourself from the dilemma of possible credit score pitfalls.
Some lenders will find it challenging to give you competitive products after bankruptcy. Some credits you can receive fast include the following:
- A secure credit card
- Car financing
- Conventional mortgage
- FHA-insured mortgage
Tips to improve credit after bankruptcy
Avoid borrowing money fast.
Focus on making timely payments on existing loans to recreate the credit. The payment history will either trigger hard inquiries about your report or allow significant leaps in the score’s value.
Create an emergency fund
It is ideal for building a savings account after a bankruptcy case. The emergency fund is essential because it protects you against getting sudden debts in emergencies. The fund should be part of the new budget for a long time until you can afford other fast income sources.
Watch the score
You have an entitlement to one copy of the credit report at least once a year. Take advantage of the service to examine your financial performance for missing information and errors. Report any instabilities to the right credit repair agency, and use an attorney if you fall into a legal predicament. Our role is to dutifully protect you against a low credit score due to inaccurate entries.
Be careful with credit repair agencies.
Many unscrupulous agencies claim to fix your credit report with little effort. The truth is that you can do everything by yourself instead of wasting the money to pay for the services of a repair agency. The only catch would be hiring an attorney to guide you through the repair process.
Make sure your efforts by double-checking your numbers throughout the repair process. The safest option is to consult an experienced attorney before you start to rebuild your credit in Southern Maryland. Contact us at (301)475-3106 for a free consultation on the best way to work with poor credit after a bankruptcy case.Rebuild Your Credit Southern Maryland
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