I have a good credit score but am considering bankruptcy. How much will it damage my credit score and when can I rebuild it to where it is now?
I’m sorry to hear you are facing bankruptcy, especially if you have a good credit score. Bankruptcy is something most people do not take lightly, and if you have a good credit score, it’s likely that you have been responsible with your money in the past. In some cases, unforeseen circumstances, like a major medical event, can force people with good credit scores to consider bankruptcy.
Bankruptcies can affect access to new credit cards, car and home loans, and can hurt job opportunities. They can also be very tough to deal with emotionally. Despite that, over a million people file for bankruptcy on average every year. Bankruptcies can remain on your credit report for up to 10 years and can knock hundreds of points off your credit score. However, there are steps you can take to boost your credit score and improve it to the point you qualify for loans again, even before the bankruptcy drops off your credit report.
First, in order to become credit-worthy again, you need to be honest with yourself about why you ended up filing for bankruptcy in the first place. If you do not do an examination of what got you to that point, you are likely to end up there again. Perhaps you were overspending, or maybe you did not carry health insurance that could have helped with those medical issues. Once you are able to identify the problem, you can take steps to prevent it from affecting you in the future.
Next, after filing for bankruptcy, you should check your credit report. Although your score should have dropped a lot, there could also be errors on your report that could hurt your score even more. If you do find errors, contact the credit bureaus. Fixing those errors could boost your score by a few points.
Although it’s probably tempting after a bankruptcy to avoid getting credit entirely, you should consider obtaining a secured credit card. A secured credit card is secured by a savings account or another deposit account, and the credit line is based on what is in the account. Once you begin making payments reliably and can show that you are creditworthy again, you will be able to get an unsecured card.
After a couple of years of reliably making payments on the credit card, you should qualify for an automobile loan. Automobile loans are secured by the car, so lenders may be willing to give loans to people with less than perfect credit. You will need to be careful and not overpay in interest, however, just because you want to rebuild your credit.
After some time has passed, you should have a number of different credit lines. If you have different types of credit accounts, that mix is likely to boost your score. Do not open too many accounts all at once, however, because that could lower the age of your credit accounts.
Finally, be patient. Although it’s normal to want your credit score fixed within months after the bankruptcy, that is not realistic. Work hard on your score, be patient, and it’s likely it will improve quite a bit with time.
If you are considering a bankruptcy, call the Atlanta bankruptcy attorneys at Holston & Huntley, LLC. Call us today at 1-888-513-0004 consultations are free and you are under no obligation to use our services. We serve Metro Atlanta Georgia as well as Birmingham Alabama including surrounding areas.
I just wanted to say thank you to the entire company,throughout my entire incident they worked fast and diligently.They always called,texted and or email me to keep me updated.They always showed great gratitude and always kept me informed. Everyone on this team is awesome.I will definitely recommend anyone here for your injury and/or bankruptcy needs.They will make sure you get the respect and the money you need. Thank you and the whole team.
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I had an excellent experience with Holston and Huntley. My case/medical expenses were treated with the upmost care and efficiency. I recommend anyone with any type of accident injury to visit Holston and Huntley. Abena Campbell was extremely helpful and made everything convenient and comprehendible about the my case. She was made everything easy as possible. I definitely recommend Ms.Campbell to take of you.
You can count on Buddy and Abena they are awesome. Abena was wonderful, she showed concern for me through my case. Abena walked me through this process like she knew me a long time. I promise you I felt good knowing I was being guided by someone who really cared their staff is awesome. I give them a 10+. Thank you guys, Especially, Abena
My experience with Holston & Huntley attorneys was nothing short of excellent. I worked directly with Abena. She worked hard to get the settlement that I deserved. Continued to stay in contact and keep me updated throughout the long process. Would recommend and work with them again. Thanks Holston & Huntley!
Attorney Huntley and his entire staff was instrumental in getting me everything I deserved. Their patience, kindness, and loyalty to fight for my needs at a critical time proves why they are such a fantastic firm. I would highly recommend them for any of your needs. I personally, will call Mr Huntley if I’m ever in another accident.
I was never anxious despite being in this situation for the first time and all the credit goes to you and your firm because you care and know what you are doing.Thanks.
I don’t usually leave reviews on anything but I thought I needed to share my experience with Holston & Huntley. It was great! Very quick and efficient. Buddy and his staff were awesome. I personally worked with Abena and she was always available to answer any question I had. I highly recommend this firm to anyone who needs a professional lawyer that would fight to get you the best settlement you deserve. I promise you won’t be disappointed!! Thank you, Buddy, Abena and staff for all of your help.
Holston & Huntley entire team was great to work with!!! Thank you so much
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