3 Credit-Improvement Tips After Filing with a Bankruptcy Attorney

3 Credit-Improvement Tips After Filing with a Bankruptcy Attorney

Bankruptcy Attorney McKinney TXWhether you have lost your job or suffered enormous expenses due to a medical illness, visiting a bankruptcy attorney in McKinney TX can help. Filing bankruptcy may seem like the end of the world, but it is an effective way to get a grasp on your financial future. Fortunately, you can bounce back after filing bankruptcy. Using these tips, you can improve your credit score after filing bankruptcy.

Get a Secured Credit Card

After suffering from massive bills and an overwhelming amount of debt, you may not want to get and use another credit card. However, applying for a secured credit card after filing bankruptcy is an effective option to begin restoring your credit.

Meet with your bank to discuss which secured credit cards they can offer you. In most cases, you will need to make a deposit to secure your credit. The deposit amount will depend on a few factors including your current credit score and the reputation you have with your bank.

The credit limit of your secured credit card will be the amount that you deposit. For example, if you make a $300 deposit down to open your secured credit card, you will have a $300 credit limit. Unfortunately, some banks may only allow you to use half of your total deposit. Thankfully, making payments on time each month will improve your credit rating and possibly allow the bank to increase your limits.

It is important to note that you will be required to pay an annual fee and a higher interest rate with these secured credit cards. When charging purchases on your secured credit card, you will need to take these fees and interest charges into consideration, ensuring you do not go over your limit or have high minimum payments.

Monitor Your Credit

Checking your credit after filing bankruptcy can be depressing, but avoiding your credit report can be dangerous.

Mistakes do happen, so it is important to monitor your credit for false reports that may decrease your credit score further. In addition, monitoring your credit will also ensure positive things are being reported after filing bankruptcy. If you are working hard to restore your credit after filing bankruptcy, your banks and accounts should report this behavior efficiently.

Monitoring your credit will not cost you anything as you can legally request a free copy of your credit report from all 3 agencies.

Make Smart Purchases

Living beyond your means can do enormous damage to your underlying finances, leading to collections and visits to a bankruptcy attorney (again). If you want to restore your credit after filing, you must learn how to budget your finances and live well within your means.

Use your secured credit card to make a small purchase each month, but pay off this purchase at the next billing cycle. Do not purchase anything that you will be unable to pay off quickly because overspending can get you back into financial trouble.

Filing bankruptcy does not have to ruin your life. Contact Collins & Arnove in McKinney TX at 972-516-4255 for help from an experienced bankruptcy attorney.

Collins & Arnove | Bankruptcy Attorney McKinney TX | 972-516-4255

By |2016-06-27T00:00:29+00:00June 27th, 2016|Bankruptcy Attorney McKinney TX|Comments Off on 3 Credit-Improvement Tips After Filing with a Bankruptcy Attorney