After the colossal financial collapse in the US, many consumers incurred insurmountable amount of debt. In this situation, they choose filing bankruptcy one of the debt relief programs to discharge their debts. But remember that filing bankruptcy adversely affects your credit score and your potential lenders might consider you high risk borrower. You might face problem getting loan on affordable interest rate. But you are not required to worry as you can easily reestablish your credit score soon after filing bankruptcy.
Here are a few effective ways to improve your credit score after filing bankruptcy:
1. When you are planning to improve your credit score then make sure that you open a charge account. You can create this type of account at a furniture or appliance store. Instead of going to a charge card issuer you can get credit from these stores easily. But the interest rate on this account is high but it will help to improve your credit score.
2. You can buy from the store by making down payment 50% of the item’s cost. When you make 50% down payment on the account then it will help you pay off the owed amount on time and it will help you minimize the amount of interest you pay.
3. Opening a secured credit card account is another way of improving your credit score after bankruptcy. You can get a credit card by depositing money into a bank account. Look for a cosigner who can help you convert the account to unsecured status after a specific period. If you make your payments without a single default then you can easily secure a card within 6 months.
4. Make sure that you immediately transfer your secured credit card into an unsecured account as soon as you get an opportunity. The interest rate on this account will be high but if you have a regular account then it will help to improve your credit score.
5. Make your monthly payment on time without a single default if you are working on reestablishing your credit score after bankruptcy. If you can responsibly mange your financial situation then it will help you improve your credit score faster. Your potential lenders will not consider you high risk borrower, therefore you can get loan on affordable interest rate.
Therefore, these are the five easiest ways to improve your credit score after bankruptcy. Make sure that you keep the above mentioned points in mind when you are planning to boost your credit score.
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