Ontario Rebuilding Credit Lawyers
If you are in dire financial straits, you want to understand your options. That’s because they will likely affect your credit score in some way. Some options, like bankruptcy, cause your credit score to take a huge hit.
Your score could drop tremendously — by 100 points or more — which is why you may want to know your options for rebuilding credit. The impact of a bankruptcy can last a long time — for 7-10 years. You may be unable to get a loan or credit card during this time, so how do you raise your credit score?
You need to be patient. Improving your credit score will not happen overnight. It will take some time, and hiring an Ontario debt relief lawyer can be helpful. Contact Wadhwani & Shanfeld to learn more about your legal options.
Steps for Rebuilding Credit
After a bankruptcy, it’s important to show that you have become more responsible with finances. Here are some steps you can take:
- Understand your current credit situation. Obtain copies of your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion) and ensure they are all accurate.
- Create a budget. Develop a realistic budget that allows you to pay your living expenses and allow for some savings based on your income. If you can stick to this budget, you will be able to manage your finances effectively.
- Open a secured credit card. Secured credit cards are available for those who have experienced a bankruptcy or have a poor or limited credit history for other reasons. These cards work by depositing a certain amount of money as collateral, which becomes your credit limit. If you use the card responsibly and make timely payments, you can show how creditworthy you are.
- Make timely payments. If you are able to get a credit card or loan, always make your payments on time. Payment history is a crucial factor in rebuilding your credit, so avoid missing due dates. Set reminders if necessary.
- Keep credit utilization low. The amount of credit you use compared to your credit limit is called your credit utilization ratio. Try to keep this as low as possible, but ideally below 30% of your available credit. This shows lenders that you can manage credit responsibly.
- Monitor your credit. Keep a close eye on your credit reports and scores. There are free credit monitoring services that can help you detect errors or fraud.
- Be persistent. Rebuilding credit takes time. Be consistent with your responsible financial habits and over time, your credit score will gradually improve.
Contact Wadhwani & Shanfeld Today
Rebuilding credit is not an easy task, but with a lot of persistence and self-control, it can be done. The Ontario bankruptcy lawyers at Wadhwani & Shanfeld can help you deal with the aftermath of a bankruptcy. We can assist you with your credit. To schedule a consultation, call (800) 996-9932.