Gonko & Vavreck, PLLC
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Looking toward the future: Rebuilding your credit score

When it comes to finances, you've likely had many ups and downs in life, with some months (even years) better than others. Most Minnesota residents would probably report similar experiences. It doesn't take much to throw your financial train off its tracks. If you or a loved one suffered adverse health in recent years, you might still be struggling to pay your medical bills.

The problem is often that once a big chunk of debt sets in, overall debt begins to increase because while you're trying to pay back the initial debt, you run out of money to try to keep up with regular, recurring expenses. If you're credit score took a nosedive during a financial crisis, you might be wondering how to restore it so that you can move toward a stronger financial future.

You have to start somewhere

Especially if you are trying to get back on your feet after filing for bankruptcy, the following ideas may be helpful to lay the groundwork for restored financial stability and to help improve your credit score:

  • Bankruptcy remains on your credit report for seven or 10 years, depending on which type you filed.
  • A first logical step to take to rebuild your credit score is to open a bank account. You may face restrictions on your account or have to pay higher fees if your credit score is still quite low.
  • One of the easiest ways to rebuild your credit score is to take out a small loan and make timely payments every month.
  • You may also be able to get a secured credit card that adjusts your available line of credit according to how much money you have in your personal bank account.
  • Keep your balances as low as possible on any credit card you own.
  • Try to never miss a payment and to always pay your monthly balance in full.

You can talk to others who have successfully overcome serious financial crises and who have rebounded after filing bankruptcy. Hearing how others were able to restore their financial stability may prompt solution ideas in your own mind.

No need to go it alone

There are various means of support available locally in Minnesota. Perhaps you want to take an economics class to help you better understand your personal budget in relation to your local and global economies. Many people enroll in special finance programs as well, and if you need legal support, that is available as well.

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The Law Offices of Gonko & Vavreck
401 North Third Street
Suite 640
Minneapolis, MN 55401

Phone: 612-503-9248
Fax: 612-659-9220
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