Bankruptcy is not supposed to be the end of your life. After going through this process, it’s time to rebuild your credit. You can get loans and credit cards again, but building up your score is going to take a bit of work. A Bergen County Chapter 13 bankruptcy lawyer can help you with your bankruptcy proceedings, but you are going to have to develop good habits of your own if you want to make the most out of this fresh financial start.
Should I Get a Credit Card?
You can get a credit card after going through bankruptcy. You might just have limited options compared to most people. A bankruptcy can deliver a serious hit to your credit score, but you might still have a few ways to use a card to build that score back up. You may be able to:
Use a secured card: These cards have low limits and you must back that limit up with a deposit. It may seem more like a debit card, but a secured card allows you to build credit as you pay off charges each month.
Become an authorized user: A friend or family member can allow you to become an authorized user on their card. Just be aware that the primary cardholder’s behavior can affect you though, so you’ll want to choose someone who handles their account responsibly.
You may also be able to apply for a regular credit card on your own, but you can expect it to have a lower limit and high interest rates.
What Else Can Help Me Build My Credit?
You can also try to rebuild your credit using a credit builder loan. Keep making payments on time and that will slowly raise your score. If you want to take out another loan and cannot do it on your own, getting a co-signer can help. This is someone who agrees to be responsible for a loan if you default. Make good on your obligations and your score will get better.
If you have any existing loans or debts that were not discharged during bankruptcy, continue to make your payments for them on time too. Your payment history is a huge part of your credit score and good habits can really pay off here.
What Should I Avoid After Bankruptcy?
You should avoid any bad habits that could send you right back into bankruptcy. That means doing everything that you can to stop yourself from overspending. Once you can get lines of credit again, don’t overdo it.
Also, do not apply for every loan or card you see. Inquiring about these can result in a “hard inquiry” to your credit, and doing too many of these in a short time can hurt your score.
Talk to a Bankruptcy Lawyer
If you are considering filing for bankruptcy, contact the Law Office of Boyd & Squitieri. We can help you figure out which type of bankruptcy works for you and then we can guide you through this paperwork-intensive process. Take a step towards a new financial future today.
