After you have filed for bankruptcy in Arizona, you are probably wondering how on earth you’re going to get your credit back to normal. It can take years to cultivate good credit to allow you to make major purchases like a home and cars, and other things that require financing and credit checks. Bankruptcy can affect your credit, but it won’t damage it beyond repair. Luckily, we have a few helpful tips to get you on the right track to repairing your damaged credit after you’ve filed for bankruptcy.

Lighter Debt

The first step you should take in rebuilding your credit is to accrue a lighter debt load. This will show lenders that you have enough income to repay your current debts and make sure you have enough money left over as disposable income. It also gives them confidence that you won’t have to file for bankruptcy again. Creating a budget and sticking to it to help keep your finances in check can give you the stability and discipline you need to avoid another bankruptcy in the future.

Credit After Bankruptcy

Build an Emergency Fund

Life can’t always be cut and dry. There will always be unexpected expenses and emergencies that could put your finances back in the gutter. Having an emergency fund can keep you from turning to less than ideal methods of repayment such as payday loans, which can ultimately make you pay far more than you naturally would. Even if you start off with as little as $100, it can help you start to build your emergency fund so it becomes more substantial in the long run.

Check Your Credit Report Religiously

You should do this whether you are recovering from a bankruptcy or not, especially in light of the Equifax security breach. When you check your credit report, it will likely point out things that are inaccurate and affecting your score negatively. When you notice that something is off immediately, you can dispute it and get it corrected before it makes your score plummett even more. Getting the inaccuracies corrected as soon as possible will only help your credit in the long run.

Look At Your Credit Score

Looking at your credit score is a great indicator of how well you’re doing with recovering from your bankruptcy. The best way to ensure that you’re getting an accurate and consistent reading is by checking the same score each time. If you look at different ones each time, you won’t get a clear idea of how much your score is changing if you keep getting different comparisons each time. Because some scores are different and take different factors into account.

Improve Your Financial Profile

When you go through a bankruptcy in Mesa, it essentially means that you have become a risk to lenders, making it nearly impossible for you to open a credit line. Luckily, there are a number of ways you can improve your financial profile so you can get to work on restoring your credit. Some of them are much easier than others, but are no less effective.

A co-signed credit card is a good place to start. This, unfortunately requires you to sign with a friend or family member who has a good credit history. This can be risky for them if you are not 100% committed to regaining your good credit standing, as it can greatly affect their credit. They are risking their entire credit history for you, and they will be responsible for the full amount if you fail to make your payments. This can put them in the same position as you, making it difficult for them to obtain loans and financing.

A good way to ensure that they do not take the fall for your missed payments should you fail to complete them, is to ask to be an authorized user on their credit card. If the credit
card doesn’t report payment activity by authorized users to the credit bureaus, it won’t help to build your score back up. So before taking step, make sure it does.

If you are suffering from inescapable debt, consult with the Arizona bankruptcy attorneys at Mesa Bankruptcy Lawyers. We provide you with the debt relief you need from student loans, mortgage payments, unexpected medical bills, and any other financial burdens you may face. Talk to one of our qualified Mesa bankruptcy attorneys today to find out more.


Written by:

My AZ LawyersCandace Kallen
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