Many people still have a stigma about how bad their credit will be after declaring bankruptcy. Not only is bankruptcy nothing to be ashamed of, but it is also possible to rebuild a better credit history after bankruptcy. Here are some things every person should know about improving credit after bankruptcy:
Old Debts Are Erased
People who file for bankruptcy are usually already suffering a low credit rating with no possibility of climbing out of debt. Therefore, the truth is that filing for bankruptcy cannot further damage a score.
Time Heals All Scores
After debts are discharged through bankruptcy, they are closed by the credit grantor. After seven years, discharged credit charges are eliminated from credit reports.
New History Can Be Built
Who a borrower was in the past does not have to impact the kind of borrower he or she can be in the future. Establishing new credit and making on-time payments can improve a credit score.Bankruptcy is not the end of the line for people but can provide a fresh start and result in better credit ratings. Those who wish to improve their credit can do so – even after declaring bankruptcy. For more advice on how to increase a credit score after bankruptcy, visit The McMaster Law Firm, LLC in Greenville.