Many people in Bradley County regard a bankruptcy as an indelible stain on their credit history, and some even believe that bankruptcy is a stain on their personal reputation. Bankruptcy can surely have an adverse effect on a person's credit rating, but the effect does not need to be permanent. People who are knowledgeable about consumer lending and bankruptcy have several guidelines for resurrecting a damaged financial reputation.
The first step is to obtain a free credit report and ensure that it is correct. The report should also be reviewed periodically to ensure that new information is accurate, especially payments to credit card companies or other lenders. One of the best ways to improve a credit score is to ensure that all payments are made on time, including both credit cards and utility bills. Avoid purchasing high-interest products on a credit card. The high interest will be difficult to pay on time. Avoid credit repair scams. Many dubious firms will offer seemingly miraculous plans for repairing a credit rating, but usually, they are only interested in collecting fees and doing nothing to help one's credit.
Apply for a new credit card. While this may seem like the same behavior that led to bankruptcy in the first place, regular payments on a new credit card can lead to significant improvement in a person's credit score. Also, obtaining a secured credit card will also help rebuild a person's credit score. Keep credit card balances low and avoid approaching the limit on each card. Balances should obviously be timely, but paying too far in advance may miss the credit card company's reporting date to credit agencies. And, the payment may not be included.
A few other tips are helpful. Prepare and follow a budget. Do not be an impulse buyer. Begin saving for an emergency fund that will cover three to six months of necessary living expenses. Recovering from the mistakes that led to bankruptcy will require much willpower, hard work, patience and discipline. If a person is successful, the result will be life changing.