Tips for Improving Your Credit Score After Filing For Bankruptcy in Columbus, Ohio

Filing bankruptcy can affect credit score for years after the event, decreasing your ability to secure a loan and making it more difficult for you to get good interest rates or even rent a property. Fortunately, there are several things you can do to improve your credit score after bankruptcy in Columbus, Ohio.

1. Avoid Debt Settlement Companies

In many cases, so-called debt settlement companies are really scams that cannot really fix your credit score or help get you out of debt. Instead, focus on legitimately improving your credit score over time.

2. Build Better Financial Habits

Sometimes, bankruptcy can occur for a reason outside your control, including unexpected emergencies that result in high expenses and leave you with few options. However, by adopting better financial habits, you can improve your credit score over time. Start by writing out a budget that includes both your necessary expenses each month and your entertainment budget. Then, make sure that you take care of all your bills on time.

3. Avoid Excessive Credit Inquiries

Try not to take out loans unless you have to and avoid making any major financial decisions immediately after bankruptcy, if possible. When a creditor checks your credit, whether they choose to offer credit or not, it can affect your credit score. Multiple inquiries within a short period of time can have a more negative impact on your credit.

4. Check Your Credit Report Yourself

Go over your credit report a couple of times a year to make sure that it accurately reflects your debts and other financial details. Make sure that all debts included in the bankruptcy are reflected as discharged or included in the bankruptcy process, since inaccuracies can have a negative impact on your credit score later.

5. Get a Secured Credit Card

A secured credit card typically requires a deposit and limits your available credit to the amount you deposited. As a result, it generally proves easier to obtain. Use the credit card responsibly, including paying it off on time, to build better credit habits.

6. Try a Credit Builder Loan

A credit builder loan is specifically intended to help build or repair credit. Talk to your financial institution about how a credit builder loan works and whether it will be an effective option for you as you rebuild your credit score.

It generally takes 7 years for a bankruptcy to fall off your credit report. However, in the meantime, you can lessen the impact and build a stronger credit rating. By following these steps, you can build a better credit score and improve your ability to secure a loan in the future.

Please call the office of Wood & Brewer if you are needing assistance navigating through your bankruptcy process in Columbus, Ohio.