Over the years, many myths have developed about credit scores and how they are affected by bankruptcies. Many believe that bankruptcy is a kiss of death to any credit score, no matter how high. Others believe there is no chance of recovering from bankruptcy. However, these myths have constantly been debunked over and over again. Not by specialists but by everyday people just like yourself. With a little hard work and knowledge of what to look for, rebuilding your credit slowly but surely can ensure you a second chance at your financial future. Bankruptcy undoubtedly affects your credit score and can linger on your credit history for quite some time but it is not the end of the world. While the impact bankruptcy can have on your credit score varies, generally ranging from a 100 to 200 point hit, with the help of a knowledgeable bankruptcy attorney, you can bounce back as soon as possible to start again.
Can I Get a Credit Card Following a Bankruptcy?
Another myth that often scares those that recently filed for bankruptcy is not being able to get a credit card. On the contrary, there are credit cards that are meant especially for those that have low credit scores like those impacted by bankruptcy. Secured credit cards can help you build your credit with little commitment. While the amount of credit is determined by the amount you put down as an initial security deposit, you can essentially build your credit score using your own money. This can allow you to gradually grow your credit score until you are able to get standard credit cards.
How Long Does It Take to Bounce Back from a Bankruptcy?
Many believe a bankruptcy myth that bankruptcy will ruin your credit forever. This is simply not the case. While bankruptcy does take a major toll on your credit score immediately, it only lasts on your credit history up to ten years. On top of that, it is possible to rebuild your credit back to where you previously had it prior to bankruptcy in as little as 1 to 2 years. This can potentially allow you to make larger purchases such as buying a house or a car.
Can a Bankruptcy Lawyer Help Me Get Back on Track?
Although bankruptcy is still seen negatively by many around the country, it is a lifeline and lifesaver for many others. You have the opportunity to flourish following your bankruptcy, more than ever before. Let our law firm help you get there by walking you through your bankruptcy from start to finish. Call Holland Law Office today at 970-232-3097 for a free consultation.