Repair Your Credit After Bankruptcy

by Kelly McLain Treacy 06/30/2019

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

Kelly McLain Treacy

Prior to launching a career in real estate, Kelly was a financial professional, starting at KPMG in Miami, where she earned her CPA as a forensic accountant. She excelled in her field working with various equity trading businesses at leading investment banking firms such as Lehman Brothers, JP Morgan, and Deutsche Bank, while living in NYC, Zurich, and London. She also spent time working in Tokyo and Sydney. 

With her vast experience, Kelly intimately understands the emotional and financial investment of selling or purchasing a home and will manage every detail of the process. She grew up in a family of real estate agents, general contractors, and property developers and has an appreciation for all aspects of the industry from start to finish. Combined with her determination, high integrity and strong work ethic, along with her professional skills highlighted below, she will go above and beyond your expectations to negotiate the best deal for you. 

Professional Skills:

Managing client relationships, negotiation skills, and diffusing difficult situations;

Easily adapts to different cultures and backgrounds;

High attention to detail and able to manage large amounts of financial data;

Efficiently and effectively multi-task in a fast paced, high pressure environment;

Determination and tenacity to finish whatever she starts, ensuring deliverables are completed and issues are resolved.

Personal Highlights:

Graduated from the University of Florida with a Masters in Accounting and BS in Business Administration (Management and Accounting);

Lives in Mill Valley with her family where they take full advantage of the beautiful open space and outdoor opportunities that Marin county offers;

She is an avid sports enthusiast participating in Ironman events, ultra-trail marathons, alpine climbing, paddle boarding, and yoga.

She is passionate about various causes that have impacted her life and giving back to her community:

American Foundation for Suicide Prevention

ALS

Financial Women of San Francisco

PTSA - Mill Valley Middle School