Improving Your Credit Score

Improve Your Credit Score After Bankruptcy

Your credit score can have a serious impact on your future. When you apply for a mortgage to buy a home or take out a loan to buy a car, your credit score will affect the terms of you loan. With a low score, you face higher interest rates and smaller loan amounts.

If you have had problems with debt or have filed for bankruptcy, it can have a negative effect on your credit score. However, there are ways to improve your score. At the law firm of Marcus H. Herbert & Associates in Paducah, Kentucky, we can help you understand the methods to improve your credit score and provide you a clear view of your life after bankruptcy.

Will Bankruptcy Affect My Credit Score?

Filing for bankruptcy can have a negative effect on your credit score. However, it is often a necessary step for an individual to improve his or her credit. If you are having debt issues, your credit score is already at a low point. The first step to raising your score is to eliminate debt. Filing for bankruptcy is one way to eliminate debt so that you can get the fresh start you need and start paying your bills on time.

Tips to Improve Your Credit Score

After filing for bankruptcy, improving your credit score will take time. However, there are steps you can take to get your credit score moving in the right direction.

  • Pay your bills on time: Your credit score is based on your consistent ability to pay your bills on time. If you regularly pay your bills, including credit card bills and other lines of credit, your credit score will start improving.
  • Get a credit card: Bankruptcy does not bar you from having a credit card. In fact, it can be a good idea to have a credit card so that you can rebuild your credit. It is important to pay this bill on time and in full every month in order to stay on track. Do not buy more than you can afford with your card.
  • Check your credit report: You can review your credit score once per year from each of the three major reporting agencies: Equifax, TransUnion and Experian. Stagger the three reports throughout the year by checking one every four months. That way, you can keep an eye on your credit and fix any mistakes as they arise.

Contact a Paducah Credit Restoration Lawyer

These are just a few tips to get you started improving your credit score after filing for bankruptcy. To learn about more of your options for improving your credit and obtaining relief from your debt problems, e-mail us