CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Life after Bankruptcy: Repairing Bad Credit

Bankruptcy is often touted as a fresh start following a tough financial phase. It is true – life does go on after bankruptcy and if you truly want to make the most of the experience and enjoy a fresh financial start, there are a few things you should know. There is no sense filing for bankruptcy if you are not going to use it as a learning experience and do the work it takes to get your credit back on track.

Applying for New Credit

Your first instinct after a bankruptcy might be to avoid credit all together. Unfortunately, this isn’t going to do you much good if you are hoping to rebuild your credit score. Lenders need to know your situation has changed and that you are now a good risk. If they have nothing by which to measure your risk other than your pre-bankruptcy credit habits, they will assume nothing has changed.

The key to re-establishing credit is to start slow and make smart choices. You will have limited credit card options, but it is still important to understand what is available and make the best choice. Research your options before applying because you do not want to submit a bunch of credit card applications just to see what happens. Every credit card application affects your score, so you are better off submitting just one for which you feel confident you will be approved.

Avoid credit card gimmicks that target people with bad credit. These cards have astronomically high interest rates and fees. Also keep in mind prepaid cards do not report to the credit bureau.

It is also important that you determine why a credit application was turned down. You might assume it is related to your bankruptcy and weak credit score, but there could be another reason. You can remedy the problem before applying for another card.

Managing Credit Wisely

Once you are approved for a new credit card, you need to be responsible about using it. Making purchases you cannot afford and paying only the minimum amount due on your card each month is not going to help you rebuild credit. It is important to keep the total amount owed on your card below the credit limit and pay the bill on time, preferably in full each month.

In addition to managing your new card wisely, you should also use care in managing your other payments. Missed payments on utilities, medical bills, and various fines can be reported to the credit bureaus, so you want to make every effort to stay within a budget and pay everything when it is due. To learn more about managing your new credit wisely, read this article.

Bankruptcy is an opportunity to turn your financial life around, but filing alone is not enough to make a difference. You must also work to rebuild what was damaged.

If you would like to know more about bankruptcy or you have questions about how your life will look after bankruptcy, we’re happy to help. Contact the Law Offices of Robert M. Geller at 813.254.5696 for more information.

Archive

Tampa Bankruptcy Law Blog

How Does Claiming Bankruptcy in Florida Affect Your Children?

Claiming Bankruptcy in Florida Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether...
Read More

Claiming Bankruptcy in Florida: What Happens When You File for Bankruptcy and Your Spouse Does Not?

Claiming Bankruptcy in Florida You already know how much the things you do affect your spouse when you are married....
Read More

Should You Pay Back What You Owe Loved Ones Before You File for Bankruptcy?

Florida Bankruptcy Laws It’s common for people who are struggling financially to turn to their friends and family for help....
Read More

Bankruptcy and Family Law: Does Filing Affect the Child Support I Pay or Receive?

Bankruptcy and Family Law If you’re like many people, the well-being of your children is your most important priority. Struggling...
Read More

5 Tips for Overcoming the Emotional Toll of Bankruptcy

Florida Bankruptcy Attorney Getting through the bankruptcy process is about more than just improving your finances. Working with a Florida...
Read More

Bankruptcy and Divorce: The Far-from-Perfect Storm

Bankruptcy and Family Law Bankruptcy and divorce separately are two of the most stressful events you can experience in your...
Read More

Does the Pandemic Have You in a Holding Pattern? Here’s How to Know When to File for COVID Bankruptcy

COVID Bankruptcy If you’re struggling to make ends meet and you feel as if your life is on hold because...
Read More

Will Your Favorite Retailer File for Business Bankruptcy in 2021?

Business Bankruptcy 2020 was a tumultuous year and many of the financial challenges caused by the pandemic are expected to...
Read More

Boosted and Extended Benefits Keeping Unemployed Afloat – But For How Long?

Unemployment Benefits Were you one of the millions of people who ended up out of a job and using unemployment...
Read More

Should Bankruptcy Laws Be Adjusted Because of COVID-19?

Bankruptcy Laws The COVID-19 pandemic brought a lot of changes throughout 2020 and many are expected to continue into 2021...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions