Contrary to popular belief, rebuilding your credit score after a bankruptcy is not impossible. In fact, in some ways, it is easier to rebuild your credit score if you declare bankruptcy. The truth is: Sometimes your credit score will be better off in the long run. And here’s why…
If you are struggling with your finances and your credit score, and you do not see an immediate light at the end of the tunnel, you will probably continue to struggle for a few more years. As you fight to stay afloat, you will probably miss a few payments here and there. And your credit score will suffer. In two years, it will be exactly where it is now. It might even be worse. And as you continue struggling to keep your head above water, your score might sink deeper and deeper.
But if you declare bankruptcy today, and then start the process of rebuilding your credit score after bankruptcy, in two years, you could have a great credit score!
Our point is that you can rebuild your credit score, sometimes in twelve months, and almost always in two years. The key to rebuilding credit after a bankruptcy is to take two critical steps. First, you will need to open new lines of credit. Second, you will need to pay your bills on time.