After having experienced substantial financial issues and made it through bankruptcy, you undoubtedly want to make sure that you stay on the right financial track. That means using your freed-up cash flow to set yourself up for financial security, which may require taking on some new credit. Of course, the effects of your recent bankruptcy completion may have left you both elated because of the discharge or reorganization of your debt and slightly worried about your future credit.
Fortunately, you do not have to think that your credit's better days are in the past. In fact, you likely have several options for rebuilding your credit and for remaining financially stable as you move on from your completed bankruptcy case.
Tips for securing a stable financial future
First, you may want to remember that your financial circumstances are unique to you. This fact means that, while some credit-rebuilding tactics may work well for some, you may need to find ways that suit your specific situation. Some tips for working toward financial stability include the following:
- Securely store your bankruptcy paperwork: Though your bankruptcy case is complete, you may still need your paperwork in the event that a creditor still attempts to collect on money you no longer owe or if a prospective lender needs your bankruptcy information.
- Assess your financial past: Understanding how you ended up with your previous financial struggles may help you prevent similar events in the future.
- Explore your credit-building options: You may think that you should jump at the first chance to apply for a new loan in order to help your credit, but that may not work in your best interests. Instead, you may want to take the time to explore your rebuilding options and find the most feasible for your situation.
- Evaluate your credit report: You may not think you need to check your credit because you know that it is not at its best. However, looking over your credit report could help you spot any inaccuracies that may continue to hold your credit score back.
- Ensure your financial readiness: While you understandably want to rebuild your credit as quickly as possible, you need to make sure you have the financial security to take out a loan or utilize another rebuilding tool. If you take out a loan before you have the ability to make timely monthly payments, you may only find yourself struggling again.
Wanting to get your finances secure as quickly as possible after bankruptcy is admirable, but it also pays to take the time to make sure you set yourself on the right track toward that security.