If you’re faced massive debt, bankruptcy is a good option to get your finances back in order. However, you’re probably concerned about the impact filing will have on your credit history and how this will affect your ability to secure loans and credit in the future. In this case, The Balance offers the following tips on how you can begin to repair your credit after filing for bankruptcy.
Make payments on time
Some of your debt will not be included in your bankruptcy filing. It’s crucial that you keep current on these accounts, as late and missed payments impact your credit score. If you’ve filed for chapter 13, you also need to keep up with the payments scheduled by the court. If you fall behind you could be faced with revocation of your filing status.
Check your credit report
It’s true that your credit score will take a hit after bankruptcy. That doesn’t mean you should completely neglect your credit report during this time. In some cases, creditors may continue to list debt even after it’s been written off due to bankruptcy. It’s important that you address any inaccuracies or issues so they don’t drag your score down even further.
Maintain stable employment
At some point, you’ll need to apply for new lines of credit and loans. A diversified financial history is a must for rebuilding your score, provided that you use credit wisely. In this case, keep in mind that lenders will look at a number of factors when deciding to grant approval. Along with your credit score, lenders will also look at your employment history to make a determination. Holding multiple jobs in a short period of time makes a person look unstable, which gives most lenders pause. This could count against you when rebuilding your finances.