Know how to clean up your credit after bankruptcy

If you recently filed for bankruptcy in Illinois, you are not alone. According to the U.S. Courts, nearly 62,000 people across the state did the same thing during fiscal year 2015. At Ledford, Wu & Borges, LLC, we know that working to restore your credit following bankruptcy is an important step for moving forward. There are several ways you can accomplish this.

Keeping an eye on your credit report is important, as it can help you identify if there has been any fraudulent activity or erroneous reporting. If you find a mistake, you should contact the credit reporting agency immediately to dispute it.

According to a report from Bankrate.com, people who have filed bankruptcy should get a secured credit card with your bank. This gives you the opportunity to make payments and demonstrate your financial responsibility. Keep in mind that in order to obtain credit, you may need to make a large deposit or pay a higher interest rate. Once your credit hits 650, experts note that you may be able to borrow money at a decent rate.

Bankrate.com also notes that anyone who has recently filed for bankruptcy should avoid borrowing money to pay off debts quickly. Instead, making payments on-time and in-full will slowly rebuild credit.

Filing for Chapter 7 means that you have eliminated your debt, which presents the perfect opportunity to have a savings account. Having savings will help you from going into debt again should an unexpected expense occur.

For more information on this topic, please visit our page regarding what to do following bankruptcy.

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