Here at Kain & Scott our professional, kind and helpful team of Minneapolis Bankruptcy Lawyers are truly honored to help each and every one of our clients get their lives back. Our client satisfaction and peace of mind is our top priority which is why we strive to continuously build upon our reputation as the nicest (most kind and helpful) Bankruptcy Law Firm in Minneapolis and the greater Twin Cities area. We know that the Bankruptcy Process doesn’t end with filing your case, so here’s some helpful information to give you a better understanding of how to begin rebuilding your credit score after you’ve received your discharge.
First Things First, Pull Your Credit Report
Struggling with overwhelming debt and facing threatening creditors and debt collectors can really make us feel like we are locked in a combat with our financial obligations. However, after filing bankruptcy and receiving discharge you won’t feel like that anymore, but you will need to begin rebuilding your credit score.
How do we do this?
Shortly after receiving your discharge, preferably about 30 days (one full billing cycle), start by pulling and assessing your credit report from all three of the major credit reporting agencies Transunion, Experian and Equifax. Once you pull your reports start looking for any incorrect information or debts that were included in your bankruptcy. Anything that you find will need to be disputed and removed. After you’ve gotten your credit reports corrected and cleaned up you’ll be ready to take on new credit and financing again.
Next, Get a Credit Card (Maybe Two)
Now this might sound kind of bizarre, since you’ve just got out of debt, but you need to prove to lenders that you are competent and capable of responsibly making payments. Using one to two credit cards on a regular basis and consistently making the payments on-time for several months in a row will significantly help to increase your credit score. Not only that it will improve your creditworthiness. Lenders will feel comfortable offering you credit and financing because they know that they can trust you to make your payments. Plus, they know that you can’t file bankruptcy again for 8 years. This makes you a very low risk to them.
Sure, you might have to endure unfavorable terms, conditions and higher interest rates at first but as long as you pay it off in full every month, none of that matters. It’s most important to understand that these new credit cards are merely just a tool needed to increase your credit score and prove that you’re trustworthy.
If you can’t get a credit card or subprime financing isn’t available to you (which is VERY rare), then get a secured credit card. Load the secured card with as much money as you can and use it to make purchases just like you would a regular one. This will serve a similar purpose.
Still Need Help? Contact The Minneapolis Bankruptcy Lawyers At Kain & Scott
Take it from us and our Minneapolis Bankruptcy Lawyers when we say "building a 720 credit score is right around the corner!” Please feel free to reach out to our Minneapolis Office and we’d be happy to help. Remember… We don’t judge you, we help you get your life back!
Our experienced Lawyers are on hand right now and ready to share their 40+ years of expertise and get you exactly the help you need.
Minneapolis, MN 55402