Bankruptcy and how it impacts your credit score is a pleasant surprise to many of our clients. Whether you filed Chapter 7 bankruptcy or whether you filed Chapter 13 bankruptcy, credit score recovery is near.
It will undoubtedly be a bit difficult to build credit in order to purchase a home in the near future. However, if you take certain steps, you’ll be able to rebuild your credit score much faster than you think. I’ve seen people able to purchase a new home within three or so years. With the right information Bankruptcy and how it impacts your credit score will come as a nice surprise.
There are countless ways to save money and rebuild credit after bankruptcy. The most important way to prevent yourself from returning to the black hole is to not take on more debt. Most people do not realize how quickly credit card bills add up. They don’t consider how much buying your lunch everyday can have an impact on your finances. Or how much can be saved by doing simple things. If you don’t absolutely need it don’t buy it. In addition to this basic rule of thumb, which is often easier said than done, the tips below will help you heal the wounds of your financial struggles that led to bankruptcy.
Change Your View About Bankruptcy:
When people hear the word “bankruptcy,” they tend to give it a negative connotation. They believe bankruptcy means someone is financially irresponsible. For many people this is not the case. If you’ve filed bankruptcy, you may have done so because of a mountain of medical bills you simply could not pay. This is something that was likely beyond your control. Regardless of whether you may have put yourself in a financial situation or not bankruptcy isn’t a sin. If you change the way you view bankruptcy from negative to positive, you will have the motivation to start fresh. Think of bankruptcy in Tulsa Oklahoma as a clean slate. You have the opportunity to make wiser choices and save money to buy that dream home.
Live Without Credit Cards:
You would be surprised at how you can survive without many of the purchases you are accustomed to making. Each time you want to buy something, take a few seconds to think about whether or not you really need it. If you cannot afford the item, then you shouldn’t buy it. Don’t let department stores and solicitations in the mail encourage you to open credit card accounts. This is typically the beginning of how people incur substantial debt.
Start Rebuilding Your Credit:
A big downfall of having gone through bankruptcy is that you need credit in order to build credit. Sometimes when you file you will have reaffirmed some of your old loans and this will help. A few years after you file you will be able to get Home loans and car loans. This is very helpful as often they don’t have the same high interest rates that credit cards do. If you want your credit score to go back up, you will have to obtain a loan at some point, make timely payments and your credit score will climb back up. One way to do this is to purchase a car that you truly can afford with low monthly payments. This way, you have one debt account to worry about and not a handful of credit cards.
Bankruptcy and Your Credit Score:
If you are considering filing for either Chapter 7 or Chapter 13 bankruptcy, or if you have already filed for bankruptcy and would like guidance on how to get back on your feet, call South Tulsa Bankruptcy Lawyers today to consult with one of our highly experienced bankruptcy attorneys. Our Bankruptcy Law Firm offers a free consultation to evaluate your case. Every person has a unique financial situation that makes certain decisions better for some and worse for others. Our attorneys will ensure that you are making the best decisions possible to climb the steep cliff after going through bankruptcy. To schedule your free consultation with us, call our office at (918) 739-8984 , or you may fill out the online form located near the bottom of our home page and we will contact you as soon as possible. Our Bankruptcy law firm offers bilingual services in both English and Spanish.
