How to Improve Your Credit Score After Bankruptcy

After filing for bankruptcy, it can seem near impossible to build yourself back up credit wise. Your score will be back at an astronomically terrible level and you’ll be worrying that you have no way of getting back in good graces with any kind of bank or company. Here are a few ways of how to improve your credit score after bankruptcy has been filed.

To begin with, you’ll want to have a working knowledge of where exactly you stand now. What is your credit score? What does that mean for you right now? The better you understand where you’re at, the sooner you’ll be able to put yourself back on track and moving in the right direction. Once you understand where you are, it’s time to start laying the foundation of a future by paying all of your bills on time. This will help to slowly build back trust that was lost when bankruptcy was filed and you’ll be able to get back into the habit of meeting deadlines and budgeting your money wisely.

Eventually you will need to begin applying for credit again. When you do, be sure you don’t do so frivolously. You’ll want to be cautious and aware of what exactly the terms and conditions are as well as judging closely if this type of credit is right for you. Down the road, you will need to start looking into applying for a loan. Here you’ll want to be the most cautious. Keep your loans small and manageable and work the payments into your budget before actually having to pay them off. This will keep you from falling behind and make you feel secure when you actually take out the loan itself.

Much of what you will be doing is staying self-aware. Know what your limits are and don’t try to push them too hard. While it’s important to take risks in life, it’s equally important to know when to play it safe. After filing for bankruptcy, the safe plan has time to shine. Avoid closing accounts and keep a look out for credit repair services. Don’t let them scam you into giving them your business only to find out things that you would’ve easily been able to draw conclusions about on your own for free.