Monitoring Your Credit After Bankruptcy

As Ohio bankruptcy attorneys, we know all about the myths following a bankruptcy filing. One of which is how long it takes to build and maintain a better score after you file for Chapter 7 or Chapter 13 bankruptcy. The Jones Law Firm is here to help you monitor your credit after bankruptcy.

Remember The Timeline – Monitoring Your Credit

Many people think that filing for bankruptcy is the immediate fix all to their financial problems. However, it’s important to remember that there is a timeline for credit rebuilding as the bankruptcy filing stays on your record.

For Chapter 7 and Chapter 13 filings, your bankruptcy will stay on your credit report for up to 10 years. The more time that passes, the less the bankruptcy filing impacts your credit report as well as the more you pay on your debts, the better your credit score will become. In a Chapter 13 filing, as soon as you begin payments you may see minor changes in your score, even though the filing remains on your credit history for the 10 years.

How to Rebuild and Monitor Your Credit After Bankruptcy

Monitoring your credit after bankruptcy may seem like a challenge, but it doesn’t have to be. Take a look at how you can rebuild and monitor your credit following an Ohio bankruptcy filing.

1. Keep up on bills. This may seem obvious but many of us think that bankruptcy is a free pass on paying off new debt which is not the case at all. Though some debts will be forgiven and creditors will stop harassing you, it is important that you keep up on your current bills. This will lower your debt while you gain income, thus boosting your credit.
2. Apply for new credit. This may sound contradictory since your credit score may be hurting, but it’s imperative that you open up a new line of credit to show lenders you are capable of paying your monthly bills. Though you may find it difficult to get most forms of loans, you may be able to open up retail cards, secured loans, and some smaller loans such as for a car.
   
3. Keep new credit balances low. You only want to utilize a new credit card that you can definitely pay back. Lenders will be more willing to lend to you if they see a credit ratio of around 30% of available credit.
   
4. After filing for bankruptcy, you are given free credit reports–utilize them! Check the report and be sure to keep accurate books of your spending and payments. If there is an error, be sure to dispute it. You’re working hard to rebuild your credit, don’t let a small error set you back.
   
5. Report everything to the Credit Bureaus. Creditors and lenders do not have to report your spending and payments to the credit bureaus–but you can request they do so. This includes rent, utilities, cell phone payments, and more. Though not all credit scores are calculated the same way, the positive credit encounters can’t hurt you for future reports.

There are many ways you can rebuild your credit while also monitoring your current credit history after bankruptcy. And if you have questions about your credit score, go to the professionals–The Jones Law Firm.

Get Started on a New Credit Score with The Jones Law Firm

Rebuilding your credit after bankruptcy may seem complicated. But it doesn’t have to be. Contact The Jones Law Firm today to discuss your Ohio bankruptcy options. Your financial future begins today.