A top concern for many Maryland residents who are planning to file for bankruptcy is the impact that such a choice may have on their future credit standing. It is important to understand that while consumer bankruptcy will have an initial negative impact on one's credit, that damage can be repaired in a relatively short period of time. By using the tactics shared here, consumers can be on the road to solid credit immediately after the conclusion of their bankruptcy case.
One of the most important aspects of rebuilding credit after bankruptcy involves paying all bills on time. It may sound simple, but having a record of timely credit payments is one of the fastest ways to repair credit damage. It is also essential to obtain copies of all three major credit reports at the conclusion of bankruptcy to ensure that accounts that were discharged are properly noted as such.
Another great way to manage credit is to take a critical approach to any new credit card offers. There is no shortage of unscrupulous lenders who will target consumers in the months following a bankruptcy. Evaluate each and every offer to choose options with low interest rates and no hidden fees. Also avoid opening too many accounts at once or closing accounts that have been open for a long time but have no new activity. These types of changes will have a negative effect on credit scoring.
The timeframe following the conclusion of a consumer bankruptcy is one of hope and optimism. The elimination of unsecured debt can give Maryland residents a fresh financial start. What one does with that fresh start is up to them, and building a solid credit score is a great way to leverage bankruptcy into a healthy financial future.
Source: Forbes, "8 Tips For Getting And Keeping Good Credit", July 7, 2015