The term bankruptcy still carries with it some negative connotations. It’s a common misconception that only those who have been reckless with money file for bankruptcy, but this is far from the truth. Financial hardship can fall upon anyone.
If you’ve been in this position and gone through the bankruptcy process, you might think that your credit rating is ruined for good. This is not the case. While bankruptcy will impact your credit rating in the short term, you can start to rebuild this after only a few months. Outlined below are a few tips to get you going in the right direction.
Your daily habits
One of the most important things you’ll need to do is pay all of your household bills on time. This includes your phone bill, utility bills and credit card balances. Simply making consistent payments on time can increase your credit score significantly after only a few months.
Stay on top of your credit score
When you were struggling financially, you could barely bring yourself to look at your credit report. Post-bankruptcy, it’s important to try and shake this habit and stay on top of your credit file. Usually, things are not as bad as you had imagined and you can actually start to gain confidence from the progress you are making.
Bankruptcy can give you the opportunity to start afresh. If you’re thinking about filing then it is in your best interests to seek some legal guidance before committing to anything in writing.