HOW TO REBUILD YOUR CREDIT AFTER PERSONAL BANKRUPTCY
Many people who consider personal bankruptcy worry that their credit will become permanently damaged, but this does not need to be the case. In fact, the process of rebuilding credit after personal bankruptcy in Edmonton can start as soon as you have been discharged. The personal bankruptcy advisors at Fox-Miles & Associates Inc. Licensed Insolvency Trustee have put together some steps to improving your credit score after bankruptcy. The government of Canada has some guidelines here.
Create a monthly budget
The first step to rebuilding your credit score after personal bankruptcy in Edmonton is to take control of your personal finances by creating a detailed monthly budget. Account for all of your regular expenses and try to set aside a little bit for your savings every month for emergencies.
Make a plan to pay your bills on time
When creating a budget, you need to prioritize the payment of any bills and debts. Rent, electricity, cable, internet, cell phone bills, and other monthly expenses should all be at the top of your list. Input them into your calendar so that you don’t accidentally miss a payment and incur additional fees. Paying your bills as soon as you get them can be a good strategy.
Apply for a secured credit card
A secured credit card is a card that requires a security deposit. Start using it for a few small monthly expenses, making sure to pay your bill on time and in full every month. Making payments to a secured credit card will contribute directly to rebuilding your credit after personal bankruptcy in Edmonton.
Increase your credit limit
Once you’ve successfully managed the monthly payments to your secured credit card for a while, you can then request a credit limit increase to show greater responsibility. Make sure you only request an amount that you can handle, and try to wait at least six months before requesting an increase again.
Switch to an unsecured card
After a year to a year-and-a-half of responsible payments to a secured card, you can apply for a regular, unsecured credit card. It is important to keep the same mentality as you had with your secured card so that you continue to stay on top of payments.
Keep an eye on your bank account
While fixing your credit after personal bankruptcy in Edmonton has a lot to do with obtaining new credit, you also need to keep an eye on your personal bank account. Regularly over drafting your account in order to pay your credit cards can harm the good financial habits you are trying to create.
Take Control of Your Debt with Personal Bankruptcy in Edmonton
If personal bankruptcy seems like the best financial option for you, then Fox-Miles & Associates Inc. Licensed Insolvency Trustee is here to walk you through the process. Our Edmonton personal bankruptcy advisors will also help make sure that you are all set up on the path to rebuilding your credit afterwards.
To learn more about personal bankruptcy in Edmonton, don’t hesitate to contact Fox-Miles & Associates Inc. Licensed Insolvency Trustee today.