For individuals facing overwhelming debt, bankruptcy can be a welcome relief and chance for a fresh start. Although bankruptcy can help you clean your slate, it will also slightly damage your credit score. During the months immediately after filing for bankruptcy, it is important to develop habits that will help you improve your credit rating. If you are considering bankruptcy, consulting with a legal professional about your options and any future plans may be helpful.

Helpful Tips for Improving Your Credit Score

In determining a credit score, a bank or financial institution will consider your history as well as your current debts or credit payments. There are some actions you can take to improve your credit score including:

• Minimizing your credit card use- If you must use a credit card for a major purchase, attempt to keep the balance below 30 percent of your maximum line of credit. The lower the amount, the more likely it will be that you can make responsible payments and help to strengthen your score.
• Make responsible and regular payments- It is helpful and financially prudent to pay off your credit cards over a short amount of time, but even making minimum payments will help to prove your reliability to creditors.
• Avoid maxing out your credit cards at all costs. Do not make purchases that are beyond your means on credit, as the subsequent debts could potentially overwhelm you and create financial problems. Whenever possible, use cash or a debit card.

Understanding your position and planning ahead for your future can help you to avoid further financial trouble.

If you or someone you love has questions regarding bankruptcy or credit, contact the Cincinnati bankruptcy attorneys at the Ruehle law office.