Credit Lawyer Edmond, OK
An Edmond, OK credit lawyer is aware that when a person files for bankruptcy, the road to repairing their credit feels overwhelming. The good news is that with careful planning, you can begin rebuilding your credit as soon as your bankruptcy case has been completed. Although bankruptcy can have a significant impact on your credit score, the following tips from Marty Martin Bankruptcy Law can help you on the road to financial recovery and stability.
Examine Your Credit Report
Once your bankruptcy has been discharged, you should obtain copies of your credit report from all three major credit bureaus. These are available free of charge once a year. Review the reports carefully, ensuring that all accounts included in the bankruptcy have been correctly reported.
Create a Budget
Establish a realistic budget that prioritizes essential expenses and allows you to make regular payments toward your debts. Tracking your income and expenses will help you manage your finances effectively and help prevent further financial difficulties.
Pay Your Bills on Time
As an Edmond credit lawyer can explain, one of the most important steps you can take to rebuild your credit is consistently paying your bills on time. Set up automatic payments or reminders to ensure you never miss a due date. This positive payment history will gradually improve your creditworthiness.
Apply for a Secured Credit Card
Consider applying for a secured credit card. These cards are different from regular credit cards in that they require a cash deposit as collateral. Your credit limit is how much the credit card company is holding in “savings.” For example, if you send the card company $500, your credit limit will be $500. Use the card responsibly, making small purchases and paying the balance in full each month. Over time, this will demonstrate your ability to manage credit responsibly and improve your credit score.
Build a Positive Credit History
In addition to a secured credit card, there may be other options you have to build a positive credit history. For example, you can become an authorized user on someone else’s credit card or apply for a credit-builder loan. While obtaining a vehicle loan on your own may be difficult, you could qualify if you have a co-signer. These strategies can help diversify your credit profile and showcase your creditworthiness.
Keep Credit Use Low
As you are rebuilding your credit, you will find that the amount of credit available to you will increase. However, it is crucial to not utilize all the credit available to you. Ideally, you should keep your credit utilization ratio under 30 percent. Keeping your balances low will show responsible credit management and help improve your credit score. It will also help ensure you do not get overwhelmed again with too much debt.
This is also a reminder that as you are rebuilding your credit, do not apply for too many credit cards, loans, etc. Too many inquiries on your credit history can also have a negative impact on your credit score.
Contact a Bankruptcy Law Firm for Help
If you would like to learn more about bankruptcy and rebuilding your credit, contact Marty Martin Bankruptcy Law to speak with a skilled Edmond credit lawyer. Call our office to schedule a free and confidential consultation.