For people who have filed a Chapter 13 or Chapter 7 bankruptcy , opening up another line of credit seems counterintuitive, but experts argue that it is important that you reestablish a good credit rating. Your credit takes a significant hit when you file for bankruptcy, and it will take some time and responsible use of credit to improve it to where it was before you filed.
Personal bankruptcy will stay on your credit report for up to 10 years. If you don’t take steps to improve your credit, your rating will not improve–even after the bankruptcy is no longer on your credit history.
Research credit cards before you take one out. Make sure to choose one that reports to all three of the major credit reporting agencies each month. Be sure to make all your payments on time-a late payment will hurt your credit more than it did before you filed. Also keep your balance low, experts suggest using no more than 10 to 15 percent of your available credit.
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Benjamin Brand Services- Chicago bankruptcy attorney .