Credit Recovery

Many things effect your credit ratings. A credit score of over 700 is considered a good credit score rating. A score over 800 is exceptional. Scores in the 600’s will make it more difficult to get a good interest rate on a loan, but you will still likely be able to obtain the loan, you should just expect to have a higher payment due to getting a higher interest rate.

Some people may worry about the effect a bankruptcy will have on their credit rating, but the truth is that there are several things you can do to start rebuilding your credit immediately after your bankruptcy discharge. The following will help people improve and restore their credit ratings regardless of whether they have ever filed for bankruptcy or not.

Rebuild Your Credit with Credit Cards

A great way to establish or rebuild credit is by obtaining and using credit cards. You may think that it would be impossible to get a credit card after a bankruptcy, especially if you discharged a large amount of credit card debt and your current cards were canceled. This is often not the case, however. In fact, many people seem to be flooded with credit card offers after they emerge from bankruptcy. This is because post-bankruptcy your debt load and debt-to-income ratios are very low, making you very attractive to credit card companies.

If you can’t get a card from one of the major credit card companies, you may still be able to obtain a secured credit card. A secured credit card is one where your credit limit is secured by a payment or balance in your checking account or some other collateral. If you fail to pay your credit card bills, you could lose the security you put up for the card, but by making small charges and keeping your account in good standing, you can start restoring your credit right away.

We will teach you how and when to apply and use new credit cards to significantly improve your credit score even after a bankruptcy.

Credit Cards? Really?

Some people got into financial trouble in the first place by over-extending their credit, and to them the idea of starting up again with credit cards is dangerous. Out-of-control spending is of course a bad idea that will do nothing to help rebuild your credit, but after going through the bankruptcy process, including required credit counseling, if you feel that you can utilize credit cards responsibly, they can be a great tool toward rebuilding your credit.

Utah credit counseling 

Our staff can help clients improve their credit ratings by providing them with practical tips and clever strategies regarding rebuilding credit, money management, and overall financial health, which we do AT NO EXTRA COST.