One of the top concerns of individuals who are filing for bankruptcy is the damage that will be done to their credit score. Truth be told, bankruptcy does create a negative impact on one’s credit ranking. However, the damage that is done is far from permanent, and with the right mix of dedication and effort, Florida consumers can rebuild their credit quickly once their bankruptcy is discharged.
The first step involves gathering the proper information needed to begin the process. This includes getting a copy of all three credit reports from the major reporting bureaus. Once that information is at hand, it becomes possible to check for any inaccuracies. If there is information on the reports that is outdated or inaccurate, ask for those issues to be corrected by the proper credit bureau.
The next step is the creation of a working budget for the coming months and even years. Creating a budget entails gathering data on one’s income, assets and debts. This is known as a balance sheet, and is the base of building a solid budget. Having a budget in place allows consumers to know just how much money they have on hand to dedicate to rebuilding their credit.
Those funds should be set aside and used to pay down any balances that are incurred on new lines of credit. By ensuring that there are funds available to make timely payment, it is easier to establish a history of the responsible use of credit after one's bankruptcy is discharged. Before long, Florida consumers will be on their way to stronger credit scores and a brighter financial future.
Source: USA Today, "Personal Finance: Re-establish credit after bankruptcy", Robert Powell, July 3, 2014