When you are bankrupt, your credit score may not qualify you to take a loan. However, it is still possible for you to lift your finances and improve your credit health, especially with the help of Chapter 7 bankruptcy Act. To know how Chapter 7 Bankruptcy Helping to Improve Credit Scores, read on.
The Chapter 7 bankruptcy, which is a liquidation bankruptcy, assists you to discharge your bankruptcy in four to six months after you have filed it. You could also use the bankruptcy Act to improve your credit scores and wipe all your debts away. In fact, the chapter 7 bankruptcy could discharge much of your debt to an extent of improving your credit score.
What steps should you take after your bankruptcy discharge?
- Keep your credit report on check: You can do this by asking the three credit bureaus for your free credit report. You should not complete this process before you ensure that bankruptcy contains your debts and that the debts are marked as discharged in bankruptcy. Ensure you check for inaccurate items, missing information and other errors since any of these could affect your credit score.
- Ensure the credit card you obtain is secure: You cannot enjoy a good credit if your credit card does not satisfy security requirements. A secure credit card is essential for small monthly purchases, such as gas fill-up and grocery run. Pay for the credit monthly on time and in full if you want the bankruptcy helping to improve your credit scores. Once you do this consistently, you increase the chances of impacting your credit card positively.
- Ensure you pay your loans: You can use instalment loans, such as the student loans that were not discharged to improve your credit health. You can do this by making your payments at the expected time and ensuring that you always pay more than the set minimum. This eventually reduces your debt and qualifies you for new loans. People with improved credit health have better credit score that earn them better terms while lowering their loan interest.
Law Margulies provides bankruptcy services especially to clients with financial hardships and overwhelming debts. They also provide clients with helpful legal advice and represent clients in Chapter 7, to provide them with a lasting debt relief. If you are still wondering which Bankruptcy Helping to Improve Credit Scores, visit the websit.
