Repair Your Credit After Bankruptcy

by Bonnee Proo 10/06/2019

No one wishes to go bankrupt, but it sometimes happens. When you understand that bankruptcy is not the end of your financial journey, you will have enough strength to start all over. It can be an opportunity to move forward and develop a better, personal financial plan.

Taking the right step is a good measure against any other round financial problem that may arise later. You will be adequately fortified against any form of financial embarrassment if you take the right step. Here are the steps to take to repair your credit card after bankruptcy. 

Repair your credit

Bankruptcy will create a lot of unwanted remarks on your credit. Situations like missed payment, overdrawn credit limit will show on your file. The fact is, some of these negative remarks should fall off once the financial distress is over. Updating your information may be delayed by the creditors, thereby impeding your efforts of rebuilding your credit card. Therefore, the first step to take after bankruptcy is to clean up your credit card.

Get a secured credit card 

Your target after completing a bankruptcy is to build better credit. It is crucial that you open a credit account that you can use to improve your score steadily. Most credit card providers approve secured credit cards readily.

Diversify with loans 

The right step to having a better credit is to go for a smaller loan that will be easy to pay back. In most cases, the loan is small, and you can use it for making essential purchases, repairing of homes, and investment. This move enables you to pay off your debt without any hassle and at the same time, build a better financial outlook. 

Irrespective of the type of loan you choose, try always to pay the bills early every month. After repaying what you owe, you can then consider taking another loan to enable you to keep diversifying and creating a good payment history in your credit file. 

Keep an eye on your credit to monitor your progress 

Monitoring your credit after bankruptcy is essential as it helps you to keep watch on your credit score. The credit monitoring service and ID theft prevention will help you in this regard. 

When you sign up for a credit monitoring service, you will be able to know your financial activities affect your credit score. You will also be able to make better decisions once your credit has improved enough to qualify you for an auto loan.

About the Author
Author

Bonnee Proo

A Penn State undergrad with an MBA from University of Redlands, I specialize in the sale of new and existing homes in San Diego County. Licensed for 12 years in the Real Estate and Mortgage Banking industries, I have a strong background in Mortgage Banking and Investment property. Prior to real estate. I spent 18 years as a Corporate Accountant specializing in Healthcare and Biotechnology. I’ve always been a "numbers person.” However, my joy comes from working with and helping people make well-versed decisions with sometimes the largest investment they will ever make in their life…their home.


Leveraging my experience over the years, I am known for outstanding client service, available 7 days per week or whenever called upon to assist, execute, negotiate, guide or encourage. I strongly believe it is my duty to not only represent my clients to the best of my ability, but also to educate them throughout every step of the home buying (or selling) process, arming them with topnotch information and market insight so that they are able to make the best decisions possible. I am honest and trustworthy. I wholeheartedly believe that commitments are made to be kept. Also, I am extremely hardworking and knowledgeable about the real estate/mortgage industries and I have an EXCELLENT team of affiliates (lender, escrow, title, inspectors, etc.) with whom I work that are just as hardworking and knowledgeable in their respective lines of work, and always ready to assist.


During my spare time, you will either find me swing dancing or swinging a golf club. I also enjoy walking/hiking or spending time at the gym always working on trying to stay healthy; socializing with friends; and spending quality family time with husband, Phillip and my sassy, little fur-baby, Sadi.


 


AFFILIATIONS


National Association of Realtors (NAR)


California Association of Realtors (CAR)


Pacific Southwest Association of Realtors (PSAR)


Senior Real Estate Specialist (SRES)


San Diego Regional Chamber of Commerce (Ambassador)


East County Chamber of Commerce (Ambassador)


University of Redlands (Alumni Board)


Meals on Wheels (Volunteer)