Rebuilding your credit after bankruptcy can be both a very scary and liberating experience. On the one hand it can be a great feeling to be free of the burden of your debts and not having to worry about threatening letters to come through the post or debt collectors knocking at the door. On the other hand we all have credit of some sort and it can be a very scary prospect going out and getting straight into debt again.
How to get into debt correctly
It is perfectly possible to be several hundred thousands of dollars in debt and yet still have a great credit score. This seems a contradiction however the lesson to be learned is that if you treat your debt well, there is no reason why big debts must equal a low credit score.
The first and foremost must it to not miss any repayments. One essential element of a good credit score is to not miss debt repayments regularly. By planning your expenditure for the next month or so you should be able to budget yourself so that you do not run out of money each month before you have paid your mortgage.
One other essential part of building credit after bankruptcy is looking after your credit score. Taking a few simple measure to repair and maintain your credit score can go a long way to ensuring that you avoid foreclosure again on your new home. It can be worth purchasing a credit repair guide to help you fix and maintain your credit score. Such kits provide a good checklist of actions you can do to improve you score.
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