Repairing Credit After Bankruptcy in Ohio
Bankruptcy can be a huge help in times of need. It provides relief from loans and other payments you simply may not be able to afford. However, when you are getting back on your feet and looking to repair your credit score, bankruptcy seems to linger over your head and make circumstances more difficult.
With 15+ years of combined experience, the Columbus bankruptcy attorneys at Wood & Brewer, LLC provide proven solutions for debtors just like you. If you’re looking for a fresh financial start, or advice on filing bankruptcy in the first place, call our firm today for a free consultation!
Insight from Your Columbus Bankruptcy Lawyers
Your credit score governs more of your life than you may realize. It will play a big role in renting an apartment, financing a vehicle, or even obtaining certain jobs. Depending on whether you filed Chapter 13 or Chapter 7 bankruptcy, it may stay on your credit report for 7 to 10 years. Fortunately, credit scoring models focus more on recent behavior than past behavior, so bankruptcy will affect your score less and less as time goes on—so long as you are responsible in the meantime.
The first steps to rebuilding your credit score should be followed carefully:
1.Apply for a Credit Card: If you can responsibly handle a credit card, apply for a secured credit card or as an authorized user on a close friend or family member’s card. Both of these can build up your score.
2.Pay Your Dues On Time: Late payments will hurt your credit score, so prioritize on-time bill payments over unnecessary spending. Don’t charge more to your account than you can pay at the end of the month.
3.Don’t Use All Your Available Credit: High credit usage may signal that you’re in financial trouble. Keep your debt balance to about 20% or less than your credit limit, even if you pay off the full balance each month.
4.Check for Credit Report Errors Annually: Protect yourself against identity theft or unauthorized spending on your account which could further damage your score. Make sure everything is in order.
Make Credit Work for You, Not the Other Way Around.
In rebuilding your credit, you are essentially proving that you are capable of paying back your debts as they come due. Set safeguards in place that can keep you accountable for your spending. Sticking to a budget, only buying what you can afford, and setting up automatic payments is a fantastic start to a successful credit history. The stress and long-term consequences of not being able to make your payments far outweighs the short-term fun of living above your means. Eventually, you could reap rewards because of your good credit!
Call our Experienced Bankruptcy Attorneys in Westerville
At Wood & Brewer, we have the experience you need to get the results you desire. Our skilled Columbus bankruptcy lawyers in Westerville are ready to help you get back on your feet. Don’t try to muddle through this process on your own; sound legal advice is priceless when working through complex financial problems.