Filing for bankruptcy is not something that people in Florida want to do and it can be seen as a last resort. It can certainly rid people of their debt and help them achieve a fresh start, but people may have hesitations because of how it may affect their credit score. Lenders rely on people’s credit scores when deciding whether to lend to an individual, how much to lend to them and it also can affect the interest rates people receive on the loans.
While people may want to rid themselves of the overbearing debt, they also may want to make sure that they are not completely ruining their finances moving forward. Bankruptcies do stay on people’s credit reports for seven to ten years, but there are ways people can build their credit over that period of time. There are different steps people can take to build their credit, but they have to be smart and disciplined. It is also important to know there are not quick fixes and building credit will take time.
Ways to build credit after bankruptcy
Some of the steps people can take include:
- Make timely payments on monthly bills such as cell phone bills, utilities, streaming services and other bills
- Make timely payments on debts and pay off the entire balance on credit cards each month
- Start savings accounts even it is only a small amount at a time. Having some extra money can help avoid needing to take on additional debt
- Apply for a secured credit card. People have to put a deposit down before receiving credit card, but after that it works like a normal credit card and allows people to build their credit
Filing for bankruptcy in Florida will affect people’s credit score in the aftermath of the filing, but it is not a death sentence for their credit. People can build their credit back up afterwards. Before filing for bankruptcy people should explore their options, but if it becomes necessary it can allow people to have a fresh start. The bankruptcy process can be a complicated process and experienced attorneys may be able to guide people through the process.