Boosting Your Credit Score

Don’t see bankruptcy as failing; see it as a fresh start! Managing your finances is tough, especially when you aren’t making a significant amount of money to sustain yourself. It is easy for us to let debt accumulate over time, so it is a good idea to start establishing goals post bankruptcy – one of those goals being to improve your credit! Your credit score may have taken a hit after filing, and that’s okay. Here are a few tips to get your credit back up where it needs to be:

1. **Use a credit card. **But do so sparingly! Set yourself a very low limit, and then make all payments on time. If you apply for a secured credit card, it will require an initial deposit. These cards are good to have after bankruptcy – but don’t fall for all of the credit ads! You probably will receive many offers.

2. **Create an emergency fund. **It is always a good idea to have a fund to fall back on in case emergency strikes. Even if you just add a few dollars a day or week, the fund will gradually accumulate. This way, if you ever get into debt trouble again, you’ll have something to pull you back out.

3. **Don’t apply for lots of new credit. **Keep things simple and easy at first. You want to have a low monthly payment and enough credit to keep yourself on track. Getting yourself overwhelmed with a lot of new credit will only cause you to backtrack!

4. **Don’t miss a single payment. **Set yourself a reminder on your phone, if you have to! Even missing one payment can affect your credit score. If you select online bill pay, or even automatic withdraw, it may help you from forgetting or procrastinating on your payments. Even small payments such as magazine subscriptions can affect your credit, so be sure to keep track of everything. There are wonderful DIY bill organizers on Pinterest!

5. **Create a detailed budget. **This is a must after bankruptcy, but even for those who haven’t filed! Budgeting helps you to better take control of your finances. Set aside money for bills, money for savings, and a little bit of money for spending. By dividing up each paycheck into these categories, you’ll stay organized, and as a result, pay off debt faster.

Here at Richard Banks & Associates, we are here with you in every step of your financial journey. Overwhelming debt, along with the creditor harassment and other problems that come with it, can be extremely stressful. Our job is to help you through this, doing everything possible to eliminate the stress you are under, as well as the debt that has caused it. Have a wonderful rest of your July!