Jeffrey M. Rosenblum, P.C.
A Fresh Start

Obtaining credit after bankruptcy

Many New Yorkers are concerned about how filing for bankruptcy will affect their credit scores. While bankruptcy will cause an immediate drop in a person's credit score, there are ways people can quickly improve their credit thereafter.

Several things affect credit. By making improvements in each category after bankruptcy, a person may quickly improve their credit score. The timeliness in making payments is important. After bankruptcy, people should make certain they make all of their payments on time when they obtain new credit. The amount of available credit and the proportion of it that is owed is also something that affects credit. People should keep lower balances on new credit cards so they have a better ratio.

The length of credit and the variety of different types of accounts also factors into credit scoring. People may decide to reaffirm an older account during their bankruptcy so they can show a longer credit relationship. They may also want to consider getting a secured credit card so they have a revolving type of credit in addition to any car loans or other secured credit. People may also want to open a savings account and then take out a loan against the balance. This can help them establish a record of making fixed payments on time after bankruptcy.

Among the more common bankruptcy misconceptions people have is that filing bankruptcy will prevent them from ever getting credit again. Instead, people will find that they may receive multiple offers of credit after their bankruptcy discharge. Bankruptcy may provide important financial relief for people who are struggling under a mountain of unsecured debt. People who are in that situation may want to meet with an attorney to learn more about how bankruptcy may help them with their particular financial situation.

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