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An Organized Approach to Rebuilding Credit After Chapter 7 Bankruptcy

February 4, 2015

Our Michigan Chapter 7 Law Firm Provides the Guidance You Need for a Sound Financial Future

Emerging from Chapter 7 bankruptcy can seem almost like magic. In most cases, it takes just a few months to make the debt vanish. This is known as a fresh start, but it is only a start. At some point in the future, you may want to buy a car or even a home, so you need to learn how to rebuild your credit rating.

To Jeff Randa and his staff, this is as important as the actual bankruptcy process. They remain at your side to provide the guidance and resources you need to start working on your future credit needs shortly after you complete your bankruptcy.

How Credit Scores Work

We can begin by dismissing a common belief that you have no power to improve your credit score for 10 years after bankruptcy. In truth, it can take up to 10 years for bankruptcy to completely fall off your credit report. However, there are many things you can do to reduce the impact of bankruptcy much more quickly.

Keep in mind that bankruptcy just adds one mark to a credit report already affected by prior bill payment history, but the marks after bankruptcy also matter. Do the right things, and each negative mark on that report gets watered down by new, positive marks. Your credit score increases in spite of the previous marks against you.

Rebuilding Credit One Step at a Time

In the days following your bankruptcy, you are likely to have all sorts of companies offering advice — and even credit cards. Rebuilding your credit after bankruptcy discharge is an important part of getting back on track.  Your credit worthiness is vital in being able to obtain further financing.  Jeffrey’s staff can help you understand the steps you need to take to get your credit back.

  1. Knowing where you stand: It is important to view your credit report at least once a year. Federal law grants you the right to a free credit report once a year by using the website annualcreditreport.com.
  2. Pay your bills: Your bill payment history affects 35 percent of your credit score, and with your prior debt wiped off you, will be able to pay your current bills in full and on time.
  3. Start building credit: Credit card companies are more than happy to give you credit once your bankruptcy is over.  Creditors want to help you rebuild your credit.  It is important to secure new credit post discharge to rebuild your FICO score. Surprisingly enough, applying for an affordable auto loan or line of credit is closer than you think.  Applying for a mortgage takes a bit more time and effort, but generally with a conscientious effort to rebuild your credit, you just might be able to obtain a mortgage in few years.

Count on our entire staff to guide you through each step that helps you toward the road to financial security.

At the Law Offices of Jeffrey J. Randa, we are dedicated to making sure you are free from debt so you can focus on your important living expenses.  For a free initial phone consultation, call us today at 586-228-6523, or use our convenient contact form to learn how we can help.

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