Texas consumers who file for bankruptcy may find that its relatively easy to improve their credit score after doing so. According to a Lending Tree report, 65 percent of Americans had a credit score of at least 640 three years after filing. There are many steps that people can take after filing for bankruptcy to improve their credit score.
First, they should be sure to pay existing bills on time, and it may be a good idea to pay more than the monthly minimum. Obtaining gas or retail credit cards can be helpful as it can be relatively easy to repay those balances in full each month. It is important to note that a bankruptcy will appear on a credit report for at least seven years. However, the impact of that event will fade over time, which may make it easier to apply for credit before it falls off of the report.
Filers should avoid debt whenever possible in the first few months after debts are discharged. Instead, they should use debit cards or cash to make purchases or pay bills. It is also a good idea to create a budget and seek credit counseling if needed. Individuals recovering from a bankruptcy are also encouraged to focus on their needs as opposed to giving into their wants.
While there may be other options to resolve debt issues, it may be beneficial for some to file for Chapter 7 bankruptcy. This may make it possible to have medical, credit card and other unsecured debt balances discharged. Filing also puts at least a temporary stop to creditor harassment and collection activities.