HOW TO REBUILD YOUR CREDIT

Your credit report will show that you filed for bankruptcy for 7-10 years, based on which chapter you filed. The biggest problem in trying to rebuild credit after filing bankruptcy is the difficulty you will have obtaining new credit with reasonable interest rates.

You don’t have to wait 7-10 years to have perfect credit. After filing bankruptcy, consumers can benefit from this advice:

• Take your time. It may be tempting to get new credit quickly, Read the fine print. Interest rates can be extremely high if your credit isn’t good.

• Improve your credit score. One safe way for consumers to re-establish good credit is to get a secured credit card. Secured cards require consumers make a deposit into a savings account with a bank. The credit card company then issues a card generally for the amount of the deposit.

• Establish an EMERGENCY CASH RESERVE FUND. Have 4 to 6 months living expenses in your checking or savings account and you won’t need to rely on credit cards. This can make the difference between a minor setback and a serious disaster.

• Maintain your automobile. Repairs can be costly if you don’t have routine maintenance performed and new cars are expensive.

• Keep your insurance coverage current, such as auto, homeowners and health insurance is a necessity. Our research has shown that a large percentage of bankruptcy filers have excessive medical expenses and unemployment as the causes of their financial problems.

• Get a job and keep it and live according to your budget.