Was last year one of your worst financial years yet? If so, you are definitely not alone as many Texas residents have struggled to overcome financial obstacles thrust upon them by a failing economy. Perhaps you determined that the most viable option for getting past your financial problems was to claim personal bankruptcy. Your credit score was no doubt greatly impacted by your decision. However, once you resolve the problems that led to bankruptcy, there's reason to hope for the future.
A bad credit score needn't be a permanent fixture of your financial portfolio just because you accessed an available debt relief option when money was tight. There are several ways to take steps toward restored financial stability that may also help you rebuild your credit.
How to restore your credit score after bankruptcy
It's easy to feel downtrodden when serious financial problems arise. Even if you successfully claimed bankruptcy and developed a plan to get back on track, you may still feel overwhelmed from time to time when looking toward your financial future. The following ideas may help brighten your perspective and provide practical ways you can set the stage for good credit scores and restored financial stability:
- Keep the big picture in mind: Most people face financial problems at some point in their lives. Try not to let one phase of life define your entire outlook on the future. By keeping in mind that you're on a financial journey of sorts and there will always be ups and downs, you can focus on your current needs and set small, attainable goals to keep moving toward future financial success.
- Secure your credit: If you put money down -- typically somewhere around $500 -- you may be able to acquire a secured credit card. This helps you work your way back toward good credit standing. Your deposit is also your credit line. As you make purchases and then timely payments, you can eventually transition to an unsecured card.
- Piggyback another person's card: Some people have a trusted family member or friend add their names to their own credit cards. It's a means for practicing good shopping and payment habits while not carrying the sole responsibility of a credit card. Success for this type of arrangement hinges on your ability to act responsibly while using another person's credit card and making timely payments.
Some things just take time, and rebuilding credit after filing bankruptcy is one of them. If you're patient and diligent at staying on budget, it may take less time than you think to rebuild your credit and a new, strong financial foundation.
If you're reading this before filing for bankruptcy and are worried about how doing so may affect your credit score, or if you have run into trouble in your rebuilding phase, there are resources available to help you. An experienced bankruptcy attorney can determine your best plan of action and can help you rectify any legal problems that may arise in the meantime.