One of the biggest misconceptions about bankruptcy is the assumption that a person\u2019s credit score will be terrible for a long time after filing bankruptcy.\u00a0 In reality, bankruptcy is typically one of the fastest ways to improve your credit, other than paying off your debt within a relatively short period of time.<\/p>\n
In many cases, it takes about 2 years after your bankruptcy discharge to rebuild your credit to over a 700 credit score.\u00a0 In a Chapter 7 bankruptcy, it typically takes about 3 and a half months from the day you file the bankruptcy to get your discharge.\u00a0 Many people\u2019s credit score is higher within 6 months after their discharge than it was before they filed.<\/p>\n
Many people receive applications for credit cards soon after their bankruptcy is discharged.\u00a0 One of the best ways to improve your credit after a bankruptcy is to use credit after your bankruptcy, but responsibly.\u00a0 Getting a credit card to charge your food and other normal monthly expenses, and then paying that credit card off at the end of the month, will help you rebuild your credit and help avoid the interest associated with most credit cards.\u00a0 Interest on most credit cards is only charged if you don\u2019t pay off the balance every month.<\/p>\n
The reason why your credit improves so fast after a bankruptcy is because of 2 factors:<\/p>\n
One of the biggest misconceptions about bankruptcy is the assumption that a person\u2019s credit score will be terrible for a long time after filing bankruptcy.\u00a0 In reality, bankruptcy is typically one of the fastest ways to improve your credit, other … Continue reading