How to Rebuild Your Credit Score - Getting Your Life Back By Rebuilding Your Credit Score

Financial stress is a major cause of millions of suicides, breakups and divorces in the United States.
Financial stress is a major cause of millions of suicides, breakups and divorces in the United States.

How To Rebuild Your Credit Score

Not answering your phone and being afraid to open your mail is a sure sign of not being able to save, spend or budget your money properly.

Making money and spending it without a full knowledge of how it affects your household and future is irresponsible to say the least.

Unless we went to school for finance or accounting, many of us have been in bad financial situations already and will remain there until you develop a plan to become financially savvy.

Would you invest in a business where the owners didn't control their finances?

If we go into a business that doesn't use a registrar or spends the money they just made we would know instantly that this business would not last long. But when it comes to our household finances we treat it just as casual and expect a different outcome.

After years of spending money without a plan and going further into dept after holidays wedding and birthday expenditures we end up in:

  • foreclosure
  • dept
  • bankruptcy

Credit cards are a trap to those that have no control. Remove all cards until you have a spending plan that fits your budget.
Credit cards are a trap to those that have no control. Remove all cards until you have a spending plan that fits your budget.

Imagine going through the process of filing for Chapter 7 and not learning how to budget and build your credit to prevent yourself from getting into the same financial situation that caused you to file bankruptcy in the first place.

It’s like getting into another relationship and bringing the same mindset that ruined the first relationship. If you want to rebuild your life and credit, you have to change your financial mindset.

If you want to have a wonderful stress free life, improve your credit, and enjoy your life like never before.Take the time to absorb everything you can about budgeting with all concerned. Now practice ways to spend time and enjoy life on a budget plan and promise never to go back.

What to Expect After Chapter 7

Your credit takes a severe hit, but odds are your credit was damaged anyway. The good news is, on the very next day of your bankruptcy discharge you can begin working on re-establishing your credit right away. You will experience:

Pros:

  • You will be out of debt.
  • Opportunity to rebuild credit.
  • You will have a new start.
  • You will have less stress.
  • No more harassing calls.
  • Can get loan in 2-3 years.
  • Peace of mind.

Cons

  1. Chapter 7 on credit report up to 10 years.
  2. Credit cards (you will not touch) with high interest will bombard your mailbox.
  3. You will not be able to attain a loan for 2-3 years.

Filing bankruptcy has gotten you out of your current stress and debt and looking forward to a fresh start, so learning how to budget your money and re-establishing your credit should be your only goal to prevent future filings for chapter 7

Budgeting and paying bills should be a family effort. Together you can remain on target toward your strong financial future.
Budgeting and paying bills should be a family effort. Together you can remain on target toward your strong financial future.

3 Ways to Rebuilding Your Credit Score


  1. Get your credit reports from all 3 credit bureaus to confirm that there are no mistakes, if there are mistakes on your credit report, under the (EPIC)Fair Credit Reporting Act the credit agency must fix your credit report to make it accurate.
  2. Pay your bills on time to establish a strong financial track record to enhance your credit reports that will be useful in the next 2 -3 years when and if you want to attain a loan.
  3. Learn how to budget and spend. (resources below) Change the way you and your family spends money to avoid future problems and drive future credit score up. Never use the total amount of your credit; banks want to see you know how to handle your money. Always repay full amount spent each month.


There are spending habits that go unnoticed in our daily lives. Keeping track of expenditures will allow you to see firsthand how much money you are really spending. Exam: clothes, memberships, coffee, cigarettes, movies, snacks, etc. Account for every penny and monitor every expense (Free budget template below).

Keeping track of your accomplishments will keep you on target and make it easier to reach your monthly, quarterly yearly savings goal.

Assuring your financial future is planned and secure is responsible and will enhance your financial future, lifestyle and relationships.

Not only will you live and spend more effectively but you will be in control of your future. You will also be able to prevent your children from experiencing the same consequences of not learning how to control their finances properly.


Resources

Life After Chapter 7 Bankruptcy - How to Improve Your Spending with a Budget

5 Great Reasons For Filing Chapter 7 Bankruptcy

Free Personal Budget Plan Template you can download from Microsoft.

My Money is a government website dedicated to teaches every American the basics of financial education.

My Money For Youth teaches our children through games and activities how to save and budget.

Practical Money Skills for the whole family. This is your one stop to financial education.

Credit Bureaus

www.transunion.com/

www.equifax.com/

www.experian.com


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