Free Consultation
hablamos Espańol

Restoring Your Credit in Florida

Gainesville Bankruptcy Lawyer

Your credit score can affect opportunities for certain jobs, and a bad credit score can even hamper your ability to get a car or find good housing. Creditors, mortgage lenders, landlords, many loan lenders, and others can openly look at your credit report. You know that you want it to be in good shape, but bankruptcy or foreclosure can cause your score to plummet by 100 points or more. Bankruptcy will unfortunately appear on your credit report for 10 years, but that does not mean your credit will be bad for that long. In fact, with so much debt discharged, you can be free to rebuild your credit. Foreclosure will stay on your report for 7 years, but with a waning influence even within that time frame. Your FICO score can improve after 2 years or so, if you do not fall behind with any other debt. Short sales and deeds in lieu of foreclosure have much of the same effect on your credit.

The good news is that these processes are only the beginning, not the end to your credit. In many cases, you can start immediately after bankruptcy or foreclosure to improve your credit score. You want to be sure that you go about building credit the right way, however. Do not go to a credit repair company; you will just be paying for something you can do on your own. In fact, many credit repair clinics engage in shady business, committing fraud to boost your score. Avoid the pitfalls of credit reports and move toward a brighter financial future. Talk to a bankruptcy lawyer from our firm as soon as possible.

Using a Credit Card to Repair Credit After Bankruptcy or Foreclosure

You can make new credit almost immediately after these procedures have ended. Be aware that you can only rebuild credit if you are thoroughly prepared. You have to be able to handle whatever payments you take on. If you are able to make credit card payments again, you can use one you already have or obtain a new one. Avoid exorbitant interest and fees. You can use the card for small purchases and then be able to meet the payments every month. In fact, you should be able to pay more than the minimum monthly payment, and you must strictly adhere to a budget. You may want to arrange automatic payments so that you do not have to worry about missing any payments.

You also want to consider the difference between a secured credit card and a regular credit card. A secured credit card requires a deposit, which also puts a limit on your card. You should NEVER use your house as collateral for this. You should also be aware that this may not affect your credit score as much as regular card will. Many factors are involved when it comes to getting and using a credit card, so be sure to consult a knowledgeable professional.

How to Rebuild Credit Without a Credit Card

If any debts remain (student loans, car bills, mortgage, etc.), stay on top of these. Not only will it hurt your credit further to miss payments or fall behind, but if you keep up with these payments, it is the first step to building back strong credit. You can also clean up your credit report, by working to ensure that everything is accurate and up-to-date. You can obtain free copies and make sure that any debts listed are actually yours, and that if you have paid off debts that they are no longer listed. It is possible sometimes to get credit from a local business as well. You may be able to create a payment plan to purchase an item.

You may want to consider taking out a bank or credit union loan that is secured by a savings account or certificate of deposit (CD). You may need a cosigner for this. Again, you can never miss a payment, so be sure that you will be able to manage the payments before you obtain a loan. The repayment plan usually entails 1 to 5 years of payments. Do not pay it off in less than a year, since it looks better on a credit report to have at least a year of regular monthly payments. You also have to make sure that you will not be ripped off and know what the minimum deposit and interest rates are. It is necessary to check that this loan will get reported to credit score agency, as not every loan will do this. The whole point of taking out this loan is to notify a credit agency that you are meeting payments.

Gainesville Foreclosure Defense Attorney on Your Side

With your future is on the line, you want to be confident that you are making the right choices. If you retain an experienced Gainesville bankruptcy attorney or foreclosure defense attorney from our firm, you can be certain that you are getting the legal expertise that you need. We can help you go over your options and find the best solution for you. To start getting trusted legal advice, fill out a free case evaluation, and call to schedule your free consultation. We offer our excellent services in both Spanish and English. Contact the Law Offices of Justin McMurray, P.A. today to starting moving forward in life.

Bankruptcy & Real Estate Attorney

We have been designated by Congress as a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.