In the wake of a Tennessee bankruptcy filing, chances are, you are working hard to get your finances straightened out so that you can get the fresh start you desire. While filing for bankruptcy is often the first step in the process of rebuilding your financial situation, there are also steps you will need to take after your bankruptcy filing if you wish to get your affairs back in order. At McElroy & Associates, we recognize the critical nature of rebuilding your credit after bankruptcy, and we have helped many clients facing similar circumstances accomplish this and related objectives after a bankruptcy filing.
According to Nerdwallet, the bad news about filing for bankruptcy is that doing so may have a negative impact on your credit score. Your credit score may have already been suffering, however, if you were struggling to keep up with your bills, and there is some good news – you can start rebuilding your credit pretty quickly following a bankruptcy filing.
So, how might you go about doing so? One method of rebuilding credit after bankruptcy that many people rely on involves taking out a secured credit card. This works something like a debit card in that you fund your own account and then use the money in there when you need it. The downside of a secured credit card is that it may bring with it annual fees and high interest rates, but this is one method that can be effective when it comes to rebuilding credit after bankruptcy.
You may, too, be able to start boosting your credit score by having someone who trusts you co-sign on a loan or credit card. By doing so, however, they are essentially placing their own credit in your hands, so you will need to exercise extreme caution to make sure you stay current on all payments. While these are some common methods of rebuilding credit after bankruptcy, please note that there are numerous other avenues you may be able to take to do so. You can find more on this topic on our webpage.