One of the reasons that so many in San Diego say they are reluctant to file for bankruptcy is because they fear what it will do to their credit. It’s a natural fear, but you have to understand that living in a situation where you aren’t paying your bills on time or where you are neglecting them can actually cause your credit to be even worse than what bankruptcy will do. You can recover and you can rebuild after you go through a bankruptcy. It takes time, but it is possible. Many others in San Diego have done it before you, and you can do it as well. Here are some tips to show you how you can do it.
First, after the dust of your bankruptcy settles, get a credit card. That’s right; you can get a card after you go through the process. However, understand that you will have a higher rate in the beginning. Get just one card and make sure that you choose one that is actually going to help you rebuild your credit. Get a secured card. When you charge small amounts each month and pay them back, you can slowly start to rebuild your credit.
Second, as you start to rebuild that credit, consider taking out a very small personal loan. Get one for as little as $500, but don’t actually buy anything with it. Instead, turn around and use the money to pay back the loan over the course of a couple of months. You will still have to pay interest, but doing this will work toward improving your credit.
Third, be careful with your bills. Pay them off as soon as you can and try not to carry too much debt with you from month to month. In time, your credit rating will go higher and higher, and your life will be back on track.