Bankruptcy is a serious financial step that can have a significant impact on your credit score. However, with the right steps, it is possible to repair your credit and get back on the road to financial stability. In this post, we’ll explore the effects of bankruptcy on credit scores, and what Oklahoma residents need to know about credit score repair after bankruptcy.
Effects of Bankruptcy on Credit Scores
Bankruptcy in Oklahoma (or anywhere) is a major event in your financial history that can have a lasting impact on your credit score. Depending on the type of bankruptcy you file, the impact can range from a temporary decrease to a permanent reduction in your score. Chapter 7 bankruptcy in Oklahoma can result in a reduction of up to 200 points, while Chapter 13 bankruptcy in Oklahoma can lower your score by 100 to 150 points.
Additionally, an Oklahoma bankruptcy will remain on your credit report for up to 10 years, which means it will be a factor in determining your credit score for a significant amount of time. However, it is important to note that the longer you wait after filing for bankruptcy, the less impact it will have on your credit score.
Credit Score Repair After Bankruptcy
Despite the negative impact of bankruptcy on your credit score, there are several steps you can take to start the credit score repair process.
These steps include:
Obtain a copy of your credit report. Before you can start repairing your credit, you need to know what is on your credit report. You are entitled to a free credit report once a year from each of the three major credit bureaus.
Make timely payments. The most important factor in determining your credit score is your payment history. Making timely payments on your bills, including rent, utilities, and other debts, is essential to improving your score.
Consider a secured credit card. Secured credit cards are a great option for building credit after bankruptcy because they require a security deposit, which serves as collateral for the card. This makes them less risky for lenders, and therefore easier for you to get approved for.
Apply for a small loan. Another way to build credit after bankruptcy is by applying for a small loan, such as a personal loan or a car loan. By consistently making on-time payments, you’ll be demonstrating to lenders that you are a responsible borrower.
Wait. Finally, it’s important to be patient and give yourself time to rebuild your credit. Repairing your credit score after bankruptcy takes time and effort, but with patience and persistence, you’ll be back on the road to financial stability.
Free Consultation: OKC Bankruptcy Lawyers
Bankruptcy can have a significant impact on your credit score, but with the right steps, it is possible to repair your credit and get back on the road to financial stability. If you are looking for help repairing your credit, call Debt Line’s Oklahoma City bankruptcy lawyers for a free 10-minute consultation.
Our Oklahoma credit repair attorneys have years of experience in helping people rebuild their credit. Call us today at (405) 563-7888 or (888) DEBT-LINE to see what our Oklahoma credit repair lawyers can do for you.