Filing for Bankruptcy? Here is How You Can Build Your Credit Afterwards

Filing for bankruptcy is not desirable and is often considered as the last resort. There can be severe consequences of bankruptcy, including loss of your assets and credibility, not to mention the fact that such people are often ostracized by the society.

By: | June 7, 2016 6:49 PM
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(Reuters)

(Reuters)

Filing for bankruptcy is not desirable and is often considered as the last resort. There can be severe consequences of bankruptcy, including loss of your assets and credibility, not to mention the fact that such people are often ostracized by the society. However, there are times, when filing for bankruptcy is the only plausible alternative. In no way, bankruptcy is a ‘social death penalty’ for those, who have no hope to clear off their debt in near future. On the other hand, bankruptcy can be seen as an opportunity to start afresh, in a more planned way. Once someone files for bankruptcy, the credit report will be negatively affected by it for a number of years to come. This can be as long as ten years. As such, it is reasonably difficult to get any kind of credit for a long time. Therefore, it takes a lot of dedication, discipline, and perseverance to build a credit afterwards. However, it is not the end, and there are infallible ways to improve your credit score, albeit gradually.

Review Your Credit Report

One of the most challenging things to do is to let your all time low credit score stare you in your face, reminding you of your unfortunate circumstances. However, the first step to deal with any problem is to acknowledge it. This is the most important thing that you need to do, in order to build your credit in future. Make sure that there is no inaccurate, personal, account or ownership detail in the report.  This report will be the starting point of the roadmap for a higher credit score.

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First Published on June 7, 2016 6:49 pm
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