Experiencing bankruptcy can be one of the hardest journeys of your life. You must deal with lots of paperwork when filing for it, regularly monitor your credit score, and constantly doubt being unable to rebuild your credit. And, when elders are put in this challenging situation, it could bring them too much emotional stress.
If you’re a senior citizen, try not to look at being bankrupt as the end of the world. There are still various ways you could rebuild your credit. You can begin again and try your best to change the negative reports on your credit and improve them.
Here are some ways to improve and rebuild your credit after bankruptcy.
Check the Status of Your Filed Bankruptcy and Credit Report
You could request a free copy of your credit report to understand better what makes your credit score. Since unpaid debts could have effects on your credit report, make sure that you could thoroughly review every statement in your account to counter check any errors.
Are you wondering how long after bankruptcy can you get a credit card? It depends on the situation and the bankruptcy you file. For instance, if you file for Chapter 7, your debts will be wiped out upon approval of the court, and typically, it may take a few months. Ten years after filing, Chapter 7 bankruptcy automatically gets removed from a person’s credit report. Thus, your report does not need to initiate a bankruptcy removal.
On the other hand, filing for Chapter 13 is less advantageous because you still need to continue paying for your balances through a repayment plan as instructed by the court. Typically, it will take seven years for the bankruptcy to get removed from a person’s credit report.
Communicate with Your Friends and Family
People find it embarrassing to tell their families that they have filed for bankruptcy because of the fear of being a burden to them. However, reaching out to your trusted family members and friends lessens the stress and problems you carry.
Going through bankruptcy and trying to work your way up in rebuilding your credit could be extra challenging for seniors, especially on their emotional health. The emotional stress you experience from filing for bankruptcy and finding ways to improve your situation may take a huge toll on your health.
Thus, do not hesitate to communicate with your friends and family so they can understand you better, given that you’re a senior too, and assistance is highly needed. Also, your friends and family could assist you in taking care of your financial reports on your behalf.
Improve Your Payment History
Getting new credit after bankruptcy would make it hard for your various applications to be accepted. So, begin rebuilding your credit using the most basic way, which is to be consistent in paying your debts to have a better repayment history. Keep in mind that this is one of the simplest and most effective ways you could build your credit score again despite being old.
Your payment history also affects your credit score, so paying your monthly payment dues is beneficial to improve the status of your credit score. Assess any past-due accounts that you have and settle them. To help you, try noting down your amounts due or set up reminders to help you keep track and remember the payments you need to make.
Work on Having Better Budgeting Strategies
Even if you’re already a senior, it’s not too late to start having a better budgeting plan to help you with your financial needs. People who file for bankruptcy undergo first pre-discharge credit counseling, where debtors get help exploring various options for solving their financial problems before filing for bankruptcy.
In this sense, the information you gather from the sessions could help you devise better budgeting ways. Don’t allow yourself to be under bankruptcy again, and start building better habits to help you financially. If you think you can’t handle your finances properly, don’t think twice about seeking help from a credit counseling agency to help you.
Look for Someone with Good Credit Score to Cosign for You
Given that your payment history before bankruptcy is negative, it would be hard for you to borrow from lenders. Qualifying for a loan or any installment plans could be problematic.
Lenders would be highly doubtful whether or not they should lend you money because of not having the assurance that you could pay it back. Fortunately, you could give the assurance lenders need by having someone cosign for you.
One of the top qualities you have to look for is that they have a good credit history and score. They can make your case strong and pay on your behalf if you fail to repay. You must communicate with your co-signer the risk that comes with it like their credit score will be at risk if you don’t pay your debt on time.
Final Thoughts
Rebuilding your credit score doesn’t happen easily. It takes discipline and patience to help you turn your negative credit reports into positive ones. Even though you’re already a senior, don’t lose hope that your credit status will not improve. Instead, consider trying the five ways stated above to help you rebuild your credit after dealing with bankruptcy.