The way people feel after filing for bankruptcy can vary widely. You might feel a sense of relief, you might feel battle-worn, it all depends on the road taken to get there. But one thing that will definitely be on your mind is the hit that will be taken on your credit score and how you will work to build it back up.

It’s a widespread myth that bankruptcy will destroy your credit forever. It will do some damage to your credit score, but with discipline and some patience, you can rebuild your credit and get your financial life back on track.

The Law Offices of Loomis and Greene, your law firm in Loveland, offers ways to repair your credit after bankruptcy.

Avoid Job-Hopping

Changing your job frequently won’t affect your credit score, but many lenders look at more than just your credit report when you submit an application. If you have held several jobs in the last few years, it could indicate that you have a problem with responsibility or discipline. A lender might think twice about giving you a favorable decision on a loan.

Make Payments on Time

Making late payments on your credit cards will not send your credit score in the direction you are hoping. Make sure you are making your payments on time. Even better, do your best to pay your balance in full and keep yourself from getting into trouble with debt again.

Keep Low Balances

People with the best credit scores keep their balances low. This isn’t all about paying off balances every month, it is more about how much you charge in the first place. You will want to make sure that your total balance at any time is never more than 30% of your credit limit. Better still, keep your balance less than 10% of your credit limit and you will rebuild your credit even faster.

Avoid Applying for New Credit

Your credit score is partially based on how many new credit applications you make. So it is in your best interest to avoid putting in several loan or credit card applications at once. This holds particularly true if you are getting turned down.

Lenders think that you are desperate for credit if you have multiple applications.

Getting New Credit

You will have to eventually get a new credit card or loan if you do want to build your credit, but you need to go about it the right way.

Some credit cards approve applicants with bankruptcy because they know that, by law, you cannot declare bankruptcy again for another seven years. If you are having a difficult time securing credit with a traditional credit card, consider a secured credit card.

If you want a better loan or credit card, you can ask a friend or family member to cosign for you.

Rebuilding your credit after a bankruptcy is a process that is best approached systematically. There is no formula to predict how fast your score will rise.

If you have questions about filing for bankruptcy, contact the Law Offices of Loomis and Greene today.