Declaring bankruptcy is such a hard thing to have to do, however sometimes it's the only thing you can do and it just has to be done. Of course, declaring bankruptcy means your credit score takes a significant hit, though there are some great ways to get it back on track afterwards.
Credit scores are all important for not only getting credit in the form of loans, but also other sorts of items such as mobile phone contracts and car finance among other things.
Bankruptcies remain on credit reports for a number of years and up to a decade in some cases. This means that even if you build significantly, it will still mark your score for a while yet. That said, it's possible to improve your score financially.
The first and most important thing to do is to improve your credit score and this can be done by reviewing your history with an investigation into your report. Mistakes are common on credit scores and if you see one make sure and inform the credit company of the issue.
Paying bills on time is the best way to improve a score and ensures you get back on track faster than you would otherwise. Past payments make up a large part of your score and meeting them on time is so important - so do.
If you have a credit card, get one. Even though it may have been an issue with debt, it's the fastest way of getting back into the black and improving that score. Secured cards can be ideal for people with poor credit and allow them the chance to utilise a credit card to their score's advantage. Pay the bill off in full each month to get the full credit benefit.
Getting a line of credit or a secured loan for a car or vehicle down the road allows you to improve your score further. These loans help you raise your score and so the next form of credit you get should be lower.
The limits of your cards and loans are all important and you need to ensure you keep your balance below them. You may only be allowed a low limit due to your credit history and even if this seems a lot lower to prior bankruptcy, it's one of the prices to pay and you need to keep it. If you need a loan often options like this from Baker Financial can benefit you.
By closing your account you will close the lines of credit that are available to you and this is a negative for your credit score. The more availability of credit to the amount you have out, the better for your score. Lower credit ratios are best and you should keep all lines open, even if you don't use them.
The final piece of advice is to be patient. Bankruptcy is not sudden and getting out of it is not either. So, be patient, take your time and your improved score is soon possible.