Practicing Good Habits Is Key to Building Credit After Bankruptcy

People in Florida don’t want to file for bankruptcy and it is only an option. Although it can help people get rid of their debts and give them a fresh start in life, people might be hesitant to file for bankruptcy because of the possible impact on their credit scores. When deciding whether or not to lend money to someone, lenders rely on credit scores. This can also impact the interest rates they receive.

People may be motivated to get rid of excessive debt but they may also want to ensure that their finances aren’t in jeopardy. Bankruptcies remain on credit reports for seven to 10 years. However, there are many ways that people can improve their credit scores over time. Although there are many steps that can be taken to improve credit scores, they must also be disciplined and smart. You should also know that there are no quick fixes to credit building and it will take time.

There Are Many Ways to Rebuild Credit After Bankruptcy

  • Pay your monthly bills on time, such as utility bills, cell phone bills, streaming services, and other bills
  • Pay your credit card balances each month and make timely payments to debts.
  • Even if it’s a modest amount, you should start savings accounts. A little extra cash can be a great way to avoid taking on more debt.
  • Secured credit cards are available. A deposit is required before a credit card can be issued. However, once the deposit has been made, it functions as a regular credit card. This allows you to improve your credit score.

Credit Score

Although filing for bankruptcy in Florida can affect your credit score, it is not a death sentence. After filing for bankruptcy, people can rebuild their credit. People should consider all options before filing for bankruptcy. However, if necessary, it can give people a fresh start. Experiential attorneys might be able to help people navigate the bankruptcy process.

This post was written by Trey Wright, a bankruptcy attorney Pensacola! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.

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