Bankruptcy Lawyer | 3 Things to Avoid after Bankruptcy
Bankruptcy Lawyer . Building your financial life after bankruptcy can be a challenging task, and while there are many ways to build your credit score after bankruptcy positively, there’s an equal number of actions that you can take that will make it difficult. So what should you do in order to avoid these setbacks? Here’s a few actions you should avoid, in order to keep building a positive credit score after bankruptcy. Your bankruptcy lawyer can also review the following best practices moving forward.
1. Avoid applying for more credit than you need.
Your credit score drops a few points every time there’s a hard inquiry put into your credit score. Therefore, it’s important to plan ahead and become conscientious of how much credit you apply for, especially if you are looking to apply to multiple loans or credit cards in a short timespan. Instead, create a budget, and don’t ask for more credit than you absolutely need.
2. Avoid closing accounts.
Your bankruptcy lawyer should advise you to avoid closing your account. If you’ve finally gotten down to a zero-balance for a credit card, don’t close it out quite yet. Closing it can lower your credit score, because it will decrease your total available credit balance. Instead, keep it open and use it for small purchases that can be paid for in-full by the end of the month. That will help build your score over time.
3. Avoid missed bills and payments.
Do everything you can to stay on top of credit card or debt payments, utility bills, and rent or mortgage, since missing them after a bankruptcy can hit your score harder than in the past. Set up automatic billing, or create reminders on your calendar or smartphone to pay your bills a week in advance, especially if processing takes time. our credit score can actually improve significantly by paying bills, mortgages, and other balances regularly with no late payments or collections.
Every action has an important consequence, especially when building new credit. By avoiding the ones that can hurt your hard work, you can have a better score in as little as 6 months. Also consult with your bankruptcy attorney on ways to rebuild your credit score after bankruptcy. –blog.startfreshtoday.com
Call attorney David Pinkston, bankruptcy lawyer, for a free consultation today: (904) 389-5880. If you are thinking about #bankruptcy, #chapter13bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! (904) 389-5880