Even as the economy shows signs of improvement, the Great Recession had a huge impact on Tennessee residents’ finances, and many are still dealing with economic issues related to the downturn of the last few years. The unemployment rate is still high, underemployment is 14.4 percent and over a million Americans filed for bankruptcy, including Chapter 13 bankruptcy, last year.
The good news is that once someone has filed for bankruptcy and their debts have been discharged, it is not impossible to attain a great credit score again. People can start working on their credit rating as soon as their bankruptcy goes through, and using secured credit cards along with gas and retail charge cards can help rebuild a person’s credit. With diligence, consumers can even attain a rating of 700 or higher by the time their bankruptcy falls off of their credit report.
Still, it is important to note that there is no quick way to restore someone’s credit rating. There are some organizations that advertise that they can improve anyone’s score quickly, but the only thing that will fix a bad credit score is time and responsible financial behavior.
For those who are overburdened with debt, the best solution may be to file for bankruptcy. It could give someone a clean slate and allow them to start fresh once again. People who are interested in filing for bankruptcy may benefit from talking to a bankruptcy attorney to find out what is involved and if it is right for them.
Source: Fox Business, “How to Rebuild Your Credit After Filing for Bankruptcy,” Roman Shteyn, March 5, 2013