The Law Office of Kim Covington

Call For A Free 1-Hour Consultation
541-393-2790 | 800-673-1891

Please Ask For Kim Directly When Scheduling An Appointment

How To Build Credit After Chapter 7 Bankruptcy

Some people needlessly delay declaring bankruptcy because of their worry about what it will do to their credit. In fact, one of the major concerns after declaring bankruptcy is how to rebuild credit. You may feel overwhelmed and powerless when you contemplate your future, but there are ways to establish good credit after resolving your bankruptcy. Here are some of the ways to rehabilitate your credit after declaring Chapter 7 bankruptcy.

Get Help Establishing a Budget

Seek out resources from non-profit community organizations that offer education on budgeting. Make a budget for your household, and stick to it. If you have some extra funds left over each paycheck, squirrel it away into an emergency fund so that every unexpected expenditure doesn’t become a crisis. It may seem impossible to accumulate a nest egg, but you will be surprised at how quickly small amounts of money add up when you consistently save.

Check Your Score

It’s true that your bankruptcy shows on your credit report for 10 years, but you don’t have to wait that long to take some gradual steps towards establishing better credit. Monitor your credit score and get a credit report annually. Tackle any inaccurate information on your credit report so you can make it the best it can be.

Raise Your Score

Now that you’ve checked your credit report and have saved some money in a bank account, you’re ready to build a better credit history. There are a variety of ways to accomplish this, including a secured loan or credit card. With a secured loan, you are borrowing money from funds you already have in the bank. This may seem counterintuitive, but the bank isn’t risking losing money while they give you the chance to prove your ability to make payments on time. You deposit money to attain a secured credit card as well as pay an annual fee, but it gives you the convenience of using a card to pay for purchases while repairing your credit.

Keep Your Debt Level Low

Moving forward, try to keep any debt you accumulate as small as possible, and ideally focused on rebuilding your credit. Pay those credit-building loans on time, and watch your credit history build into something positive.

No Comments

Leave a comment
Comment Information
email us for a response

Learn More About Your Fresh Financial Start

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.

The Law Office of Kim Covington

The Law Office of Kim Covington
1445 Willamette Street, Suite 9
Eugene, OR 97401

Toll Free: 800-673-1891
Phone: 541-393-2790
Fax: 541-344-6466
Eugene Law Office Map

P: 541-393-2790

T: 800-673-1891

F: 541-344-6466