Posh Strategies for Rebuilding Your Credit After a Bankruptcy Filing
In the early years of the previous decade, the 99 percent raised their voices in frustration about the financial struggles they faced because of policy decisions made by the wealthiest one percent of the world’s population. This led to some relief for consumers, but the Great Recession now seems like ancient history, and most people’s financial stress never went away. In 2018, a journalist at a major newspaper pointed out that the people who had seen the most complete recovery from the financial setbacks of the past decade were the wealthiest 10 percent of the 99 percent; the author called them the 9.9 percent. These are the folks who don’t consider themselves wealthy, but they graduated from college with no student debt, enabling them to pay for graduate school, qualify for home mortgages, or both. In 2018, the 9.9 percent were chilling while everyone else struggled. Today, the 9.9 percent are in dire financial straits, too; a six-figure household income barely pays the mortgage. Before upper middle-class folks start feeling too sorry for themselves, though. If you once had good credit, it is much easier to repair your credit score after a bankruptcy filing than if you never owned any property to speak of. To find out more about improving your credit score after a bankruptcy filing, contact a Plantation credit repair lawyer.
How Easy Is It for the 9.9 Percent to Bounce Back and Start Borrowing Again?
To say that you cannot access credit for ten years after filing for bankruptcy is a gross oversimplification. Yes, a chapter 7 bankruptcy filing remains visible on your credit report, but this by itself is not enough to cause all lenders to run in the opposite direction. A bankruptcy filing is only one of the many items on your credit report. Remember that a credit report shows your good financial behaviors, or at least some of them, as well as your financial setbacks.
The 9.9 percent are in a unique position to get the maximum credit score boost from keeping up with their household expenses. Having a steady income helps your credit score, so your salaried job will give you more creditworthiness than if you got an equal amount of money from the gig economy. Likewise, mortgage payments help your credit score, while rent is invisible to the credit reporting bureaus unless you miss a payment, so being a homeowner helps your credit repair efforts.
Another way that having a salaried job can help you rebuild your credit after bankruptcy is that it can enable you to afford credit builder loans. Credit builder loans are much more expensive than other options, such as a cash diet and buy now pay later (BNPL); in terms of upfront costs, they are even more expensive than no credit check loans. They are worthwhile, though, because of the credit score boost, even though they effectively require you to borrow money from yourself and pay interest to the bank that issues the loan.
Work With a Debt Lawyer About Debt Management for the Bourgeoisie
A South Florida debt lawyer can help you repair your credit score after filing for bankruptcy. Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.