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Rebuilding Credit after Bankruptcy Declaration in California

Credit Score Improvement Options for California Residents Following Bankruptcy

Filing for bankruptcy is a useful tool in providing relief for families that are undergoing overwhelming financial constraints. However, a successful bankruptcy injunction is bound to reflect negatively on your credit score, making it hard for the debtor to secure credit from other lenders for a significant length of time in the future. Despite this fact, a negative credit score should be the least of your worries when dealing with dire financial situations considering the alternative risks of leaving your debts unpaid.

For one, a negative credit score can be rebuilt after the bankruptcy declaration. Actions of creditors against your property, on the other hand, are irreversible, and at times much more costly than the former.

 Financial institutions in California take into consideration the efforts made in rebuilding your credit history following a successful bankruptcy declaration.

However, you probably will not qualify for a traditional credit card with most institutions after filing for bankruptcy.

Fortunately, an individual who has previously filed for bankruptcy in California is allowed to apply for a secured credit card. The secret to rebuilding a positive report is using the credit card responsibly, ensuring that the accrued bills are paid on time. Using 10-15% of your credit limit and paying them on time will slowly raise your credit limit.

Small deposits made on your credit card will also be reported as a positive step to the three national credit bureaus in the U.S, gradually increasing your credit scores. Additionally, the more deposits you make to your credit card, the more credit you would qualify for.

A critical measure to take when trying to rebuild your credit score after successfully filing for bankruptcy is to monitor your credit reports constantly. These reports are available from the three credit bureaus at any time.  

If you are worried about the costs of such a measure, you are in for luck. The federal law allows citizens to access one free annual report every year. As a resident of California, you would be entitled to your free report yearly to help you monitor your secured credit card.

Such a step will be useful in identifying possible irregular activity, given the rampant cases of fraud and identity theft in California.

A combination of these measures will gradually help you rebuild your credit scores, eventually allowing you access to the financial benefits you had before your bankruptcy declaration.