How To Rebuild Your Credit Rating After Bankruptcy
By Glenn A. Brown, DMD, MBA, Esq.
Although you may want to avoid credit after bankruptcy, this is actually not the best thing to do. Some items are very difficult, if not impossible, to buy without credit. For instance, do you have enough money to buy a brand new house without credit? Can you even afford to buy a new car without credit? If not, you may have to rely on credit to make these or other large purchases at some point in your life. And, if you want to secure credit after bankruptcy you must first rebuild your credit rating.


Three Steps to Rebuilding your Credit Rating after Bankruptcy

Rebuilding your credit after bankruptcy is a process. Unfortunately, there is no magic wand you can wave, and feel free to ignore those companies that claim they can erase all of the negative reporting and rebuild your credit rating overnight.

You can begin the process of rebuilding your credit by doing a few simple things:

1.

Create a monthly budget.
2. Stick to the monthly budget you spent time creating.
3. Pay your creditors on time

Once you have mastered these initial three steps � give yourself a couple of months - you should then consider opening a small credit account. When working to rebuild your credit, it is a good idea to keep one or more of your credit accounts open. Making timely payments to your creditors will help increase your FICO score and credit rating over time.

Properly managing your finances and paying your creditors on time is crucial to rebuilding your credit rating after bankruptcy. At some point, you will probably need to rely on credit to make large purchases. You can rebuild your credit, better manage your finances, and discontinue those old habits that may have led you to bankruptcy in the first place. So, start on your monthly budget today and begin the process of rebuilding your credit rating.
About the Author: Glenn A. Brown, DMD, MBA, Esq. is a solo attorney practicing law in Pennsylvania, Delaware, New Jersey, D.C. and other jurisdictions. Dr. Brown's law practice, Real World Law, PC, helps individual and business debtors navigate the entire bankruptcy process. For more tips on life after bankruptcy, contact RWL bankruptcy law firm to schedule a consultation with an experienced attorney.