Can I Improve My Credit Score After Bankruptcy?

Bankruptcy Can Improve Your Credit Score!

Typically, bankruptcy is the quickest and easiest way of improving your credit score. You will receive solicitations for credit immediately after filing your bankruptcy case.

If you pay your debts in a timely fashion after you file bankruptcy, then you will likely be in a position to buy a house in 2 years.

In fact, many former clients are able to purchase a house in 2 years. Why 2 years? Most mortgage companies (but not all of them) have underwriting requirements that the prospective debtor be 2 years post-bankruptcy.

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Credit scoring companies look at several factors when computing your score:

Payment history (whether you pay bills late or have filed for bankruptcy)
Outstanding debt
Length of credit history, and
How much new credit you have applied for.

Factors for Building Credit

You can start rebuilding your credit immediately after your bankruptcy case. Most people should apply for a credit card immediately after the bankruptcy has been discharged.

Usually, the client will obtain a new credit card. In today’s financial world, a credit card is necessary in case of an emergency and you can use it to rebuild your credit.

Please use your credit card wisely. Again, if you pay this credit card in a timely fashion every month, then your credit score should improve.

Clients often believe that bankruptcy ruins your credit for 7-10 years. Even though the bankruptcy filing will remain on your credit reports for 7-10 years, it should not impair your ability to obtain credit.

Credit scoring companies focus on several different factors when they compute your credit score:

  • Payment History
  • Outstanding Debt
  • Length of Credit History

Advice for Improving Your Credit Score

Start by making your payments in a timely fashion after your bankruptcy has been discharged. Keep your debt load low, especially as compared to your available credit.

Please do not carry a significant balance on your credit card. Also, keep in mind that, if you fail to pay your credit card payment in a timely fashion, the credit card company could significantly increase your interest rate.

Why Call My Bankruptcy Firm

Unsure of whether or not bankruptcy is right for you? Want to see if you are eligible for bankruptcy? I am ready to discuss all your options with you in a free case evaluation. Find trusted, dedicated advice today at John Steinkamp & Associates.

I have helped 1,000s of people to a fresh start
My firm is backed by strong client recommendations
14+ years experience handling only bankruptcy cases
Affordable, hassle-free payment plans

Unsure of whether or not bankruptcy is right for you? Want to see if you are eligible for bankruptcy? I am ready to discuss all your options with you in a free case evaluation. Find trusted, dedicated advice today at John Steinkamp & Associates.

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