If you have filed for bankruptcy relief to help get out from under a mound of debt, you deserve to feel hopeful about getting your financial life back on a positive track.
An important next step in your financial journey should include conscious steps to rebuild your credit score.
Bankruptcy and credit scores
Prior to your bankruptcy, your credit score likely dropped if you missed any payments or made late payments to creditors. After you receive your bankruptcy discharge, your score may increase as your debt-to-income ratio improves.
Use credit to develop good credit
As explained by NerdWallet, an important way of rebuilding your credit involves obtaining and using credit wisely. The time after bankruptcy offers you the opportunity to show creditors that you learned from your experiences and have the ability to responsibly manage credit and debt.
Secured credit cards and regular payments
A secured credit card may give you the start you need to obtaining new credit accounts. You may consider putting a regular utility bill or other small expense on that card and then paying it off in full every month. This signals to creditors that you can incur debt and repay it in a timely manner without your debt continuing to spiral out of control.
Eventually, you may receive offers for unsecured credit cards. Automobile loans also present opportunities to rebuild your credit.
This information is not intended to provide legal advice but is instead meant to help resident in Oklahoma understand how they may restore good credit after experiencing a Chapter 7 or a Chapter 13 bankruptcy.