Do you need to rebuild your credit score? Finances and money are often difficult to manage. If you recently filed for Chapter 7 or Chapter 13 bankruptcy in Aurora, Centennial or Littleton, it is important to begin rebuilding your credit score/ It’s important so your finances will be more secure in the future.
Here are a few tips to rebuild your credit score:
- Check your Credit Report: You are allowed one free credit report every year. Access this through annualcreditreport.com. You’ll be able to check for errors that may be reported to the three major bureaus. If you do find an error, be sure to contact the information provider and the credit-reporting company. The three major credit bureaus, TransUnion, Equifax, and Experian also have free trials so that you can view your score in more depth. View a list of contact information for these three major credit bureaus.
- Build Your Credit: If you use cash and debit cards, and have never carried a loan, then you’ll have little or no credit history. Build your credit by taking out a credit-builder loan, or consider a secured credit card. Local credit unions often offer these loans and credit cards. It is important to build this over time, because length of credit history makes up 15% of your credit score. When you pay these loans or your credit card statement each month, you’ll build a better credit history.
- Keep Balances Low: Keep the balance low on your credit card. The amount that you owe makes up 30% of your credit score. Try to keep your balance under 30% of the total limit for best results.
- Pay On Time: The biggest factor for rebuilding your credit score is payment history (35% of your total score). Missed payments make a big dent in your score. Plus, they stay on your report for seven years.
- Use Different Credit: Try to mix which types of credit you have. Histories that have a mix of credit cards, mortgages, student and car loans are considered healthier by lenders. This accounts for 10% of your score.
An extra tip: You can pay your rent online through WilliamPaid.com. These monthly payments are reported to Experian – which builds your credit history (if you pay with a bank account).
If you are struggling financially, contact experienced bankruptcy attorney Barry Arrington, who has proven he can successfully help people overcome financial difficulties. Contact experienced Centennial, Littleton and Aurora bankruptcy lawyer Barry Arrington at 303-205-7870. Or, submit the “Get Help Now” form. He will fight to give you the best, fresh start possible.
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