{"id":3207,"date":"2021-04-16T12:05:07","date_gmt":"2021-04-16T12:05:07","guid":{"rendered":"https:\/\/hsapclaw.com\/?p=3207"},"modified":"2023-04-28T07:20:57","modified_gmt":"2023-04-28T07:20:57","slug":"three-easy-tips-to-rebuilding-credit-after-bankruptcy","status":"publish","type":"post","link":"https:\/\/hsapclaw.com\/three-easy-tips-to-rebuilding-credit-after-bankruptcy\/","title":{"rendered":"Three Easy Tips to Rebuilding Credit After Bankruptcy"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You may have heard that your credit score will take a beating after you\u2019ve filed for bankruptcy. A Chapter 7 bankruptcy stays on your record for ten years, while a Chapter 13 filing stays for seven years. Don\u2019t lose hope. With discipline and commitment, you can build your credit and be on your way to a good credit score and secure financial future. This article will discuss some easy tips you can follow to improve your FICO score.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t let a fear of a bad credit score deter you from declaring bankruptcies. It\u2019s one of the financial protection available to Americans who\u2019ve been swamped in debts. If you need a reprieve from your financial problems, consult with our <\/span><a href=\"https:\/\/hsapclaw.com\/\"><span style=\"font-weight: 400;\"><strong>Royal Oak Bankruptcy Lawyers in Michigan<\/strong>.\u00a0<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Pay_On_Time\"><\/span><span style=\"font-weight: 400;\">Pay On Time<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-66297d52de534\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-66297d52de534\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/hsapclaw.com\/three-easy-tips-to-rebuilding-credit-after-bankruptcy\/#Pay_On_Time\" title=\"Pay On Time\">Pay On Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/hsapclaw.com\/three-easy-tips-to-rebuilding-credit-after-bankruptcy\/#Create_Healthy_Credit_Habits\" title=\"Create Healthy Credit Habits\">Create Healthy Credit Habits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/hsapclaw.com\/three-easy-tips-to-rebuilding-credit-after-bankruptcy\/#Get_New_Credit\" title=\"Get New Credit\">Get New Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/hsapclaw.com\/three-easy-tips-to-rebuilding-credit-after-bankruptcy\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Payment history is one factor that dramatically affects credit scores. It\u2019s essential to pay your bills &#8211; library fines, student loans, or medical bills &#8211; promptly to improve your credit score. If any account goes into collections, it will be reported to the three major credit bureaus (Equifax, Experian, and TransUnion) and can damage your work to improve your credit score.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019ll need a history of consistent payments to show creditors that you are a responsible borrower. Live within your means and spend your money wisely. While you\u2019re in the period of building credit, you\u2019ll need willpower and wits to manage your balances and payments.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Create_Healthy_Credit_Habits\"><\/span><span style=\"font-weight: 400;\">Create Healthy Credit Habits<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3209 size-medium\" src=\"https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-300x300.jpg\" alt=\"Rebuilding Credit\" width=\"300\" height=\"300\" srcset=\"https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-66x66.jpg 66w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-150x150.jpg 150w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-200x200.jpg 200w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-300x300.jpg 300w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-400x400.jpg 400w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy-600x600.jpg 600w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/04\/Rebuilding-Credit-after-bankruptcy.jpg 626w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/> It takes effort, discipline, and commitment to bring yourself up from a low credit score. It\u2019s important to reflect on your spending habits that put you to such a low score in the first place.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Live within your means and spend your money wisely. Be wary of your credit limit and try to avoid consuming all of it each month. Credit utilization is measured by the amount your available credit that you spend. It\u2019s one of the factors that can affect your credit score.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can be challenging to overcome your unhealthy spending habits. Keep in mind that it\u2019s these habits that pulled your score down. Not only will changes in your habits raise your score, but they will also decrease the stress you have in your life by living simply but meaningfully.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s difficult to build healthy credit habits if you\u2019re swamped in debt. Filing for bankruptcy helps you get back on your feet and discharge plenty of your debt. A <\/span><strong><a href=\"https:\/\/hsapclaw.com\/attorneys\/\">Royal Oak bankruptcy attorney <\/a><\/strong><span style=\"font-weight: 400;\">can help you declare bankruptcy properly.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Get_New_Credit\"><\/span><span style=\"font-weight: 400;\">Get New Credit<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An excellent step to take on the path to building your credit is opening new accounts on your credit reports, which may be counterintuitive as it may have been <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/credit-card-debt\/\"  rel=\"dofollow\" title=\"credit card debt\" data-linkilo-keyword-link=\"linked\">credit card debt<\/a> that brought your score down initially. However, using credit cards properly helps you build a positive payment history.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A low credit score may make it difficult to get approval for some credit cards. There are some cards for bad credit that help in building your credit. A secured credit card requires an initial deposit, making it an excellent option for those with poor credit that need to get a credit card.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t overdo it. Too many credit card applications over a short period of time can negatively impact your credit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have a credit card application denied, you&#8217;ll get a letter in the mail telling you the specific reasons for the denial. These details give you more information about how creditors view your credit and factors that could play a role in future credit card applications.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not all credit cards are created equal. The following two types are unhelpful at best or predatory at worst.\u00a0<\/span><\/p>\n<ul>\n<li><b>Prepaid Cards<\/b><span style=\"font-weight: 400;\">: It\u2019s easy to get these kinds of cards regardless of credit score. However, no matter how much you pay or how responsible you are paying, a prepaid card won\u2019t help. Payments made with prepaid cards don\u2019t get reported to the three credit bureaus. As such, they won\u2019t improve your creditworthiness.\u00a0<\/span><\/li>\n<li><b>Subprime Credit Cards<\/b><span style=\"font-weight: 400;\">: These cards have absurdly high fees and interest rates. No matter how careful you are, it\u2019s easy to fall back into debt if you\u2019re using these kinds of cards.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><span style=\"font-weight: 400;\">Final Thoughts<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A bad credit score is not a life sentence. With hard work and dedication, you can have an excellent credit score and secure your financial future. It\u2019s going to be challenging to do so if you\u2019re still deep in debt and being hounded by collection agencies. Bankruptcy can help you eliminate your debts and get you started on improving your credit score.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our lawyers at <strong>Hammerschmidt, Stickradt &amp; Associates or HS&amp;A, P.C<\/strong>. aim to help individuals and families manage their financial situations and get out of debt. <\/span><strong><a href=\"https:\/\/hsapclaw.com\/contact\/\">Consult our Royal Oak bankruptcy attorney <\/a><\/strong> today for a free consultation!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You may have heard that your credit score will take a beating after you\u2019ve filed for bankruptcy. A Chapter 7 bankruptcy stays on your record [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":3210,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3207"}],"collection":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/comments?post=3207"}],"version-history":[{"count":3,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3207\/revisions"}],"predecessor-version":[{"id":4215,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3207\/revisions\/4215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/media\/3210"}],"wp:attachment":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/media?parent=3207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/categories?post=3207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/tags?post=3207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}