Considering Credit After Bankruptcy

: Chris Lee Law Firm

  Filed under: Credit Tips

credit cardsIf you have been through the Dallas bankruptcy process you probably are relieved to be back on solid financial footing. Now that your debts have been satisfied and delinquent account standings resolved you are in the unique position to rebuild your credit. Here are a few tips for maximizing your future at new credit:

1. Monitor your report — before you step foot into a new line of credit it is important you check your credit report. Many creditors fail to update your information promptly and you could be carrying around inaccuracies relating to your account or balance. Be sure all the information being reported is accurate and up to date before applying for new credit.

2. Shop around — you may be thinking that you can’t get a good line of credit after bankruptcy, but you would be wrong. Getting a good line of credit after bankruptcy is not impossible. In fact, there is a market for lending to post-bankruptcy consumers. Therefore, take the time to compare multiple offers to find the most favorable terms.

3. Start small — rebuilding your credit will take time and effort, so don’t try to do too much too quickly. Start with a single line of credit and make planned purchases that you can afford to repay in a month or two. The goal is to establish a positive payment history for at least six or more months before you branch out into bigger or secured lines of credit.

4. Keep balances in check — balances that exceed 40 percent of the available credit line can be damaging to your credit score. While you will need to maintain some activity towards having a balance and making payments, keep your total balance below the 40 percent mark to ensure your credit score is going in a positive direction.

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