Credit Counseling After Bankruptcy; Guidelines For Regaining A Good Credit Score

By Andrew Martin


Most people file for bankruptcy only after they have tried everything in vain. At that point when you are filing your petition, you may feel as though all is lost and the world is ending. The good news is that bankruptcy does not mark the end of your financial freedom and there are sure ways of regaining a good credit rating and reducing the risk of sinking into debt once more. The right credit counseling after bankruptcy will ensure that you have the guidance needed to steadily regain your financial freedom.

The first step to take is to seek assistance with analyzing your credit report. You want to know where you currently stand for you to create strategies on how to rebuild your credit. Your financial counselor can assist in checking your report for errors, inconsistencies, and most importantly, your spending patterns. He or she can help you identify areas to focus on in order to increase your financial credibility score.

Without debate, your personal credit rating will drastically decrease once you have successfully filed for bankruptcy. This will make lenders to shy away from giving you loans and those that agree will reduce their risks by giving you tough terms and conditions. The best way to work around this is by primarily using credit cards to better your score. Make sure you make monthly repayments on time because the payment history on your report makes up for about 35% of your credit score.

It is better not to use credit repair agencies. The sad truth is that such agencies may not be of much help and it is rather to use a DIY approach as long as you have reliable guidance from a competent counselor. Applying for secured credit cards would be an excellent way to start. In this case, you have to provide a down payment that is 50% the value of your credit limit. This arrangement is good and you simply need to diligently make your monthly payments as see the credit score improve.

A little help will be good for you. The need to contact a credit counseling agency should not be underestimated. The professionals can help you set your budgets and create an effective recovery plan. They will also consistently monitor your progress and literally hold your hand until you rise above your financial concerns.

It is also a good idea for you to apply for secured loans. You can apply for them in community banks or even credit unions, although you will be required to borrow against the savings you have made. This arrangement is ideal because your payment history will get to the credit rating bureau. If the credit management strategy you are using is seen to be positive, this will positively impact your credit score.

Because you are in a delicate situation, you cannot afford to make blind mistakes. After all, you do not want to get back into the money problems you are trying to escape. It remains imperative to always monitor your financials and credit and remain true to your objectives.

It takes a while to recover from bankruptcy, regain a good credit score and enjoy some financial freedom. Fortunately, nothing is impossible as long as you are patient and determined. Reliable credit counseling agencies can offer you personalized guidance after your unique circumstances are reviewed.




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