707-867-0787
Galanti & Copenhaver, Inc.
Serving clients in Santa Rosa and San Francisco, California and greater Bay Area region

Increasing Your Credit Score

Many of my clients are curious about increasing their credit report score after going through either Chapter 7 liquidation or Chapter 11 or 13 reorganization bankruptcy. Here are some simple steps you can take to get your credit up and lenders lending to you again.

1) Open up a secured credit card. This is one of those simple steps I even took for myself and saw a dramatic (100 point) increase within a short period of time (1 month). Just go into your local bank or credit union and put $500-$1,000 into a secured account, then use this account like an ATM card on your day to day expenses. Just make sure you are capable of paying back the balance in full each month, which leads me to my next piece of advice.

Many of my clients are curious about increasing their credit report score after going through either Chapter 7 liquidation or Chapter 11 or 13 reorganization bankruptcy. Here are some simple steps you can take to get your credit up and lenders lending to you again.

1) Open up a secured credit card. This is one of those simple steps I even took for myself and saw a dramatic (100 point) increase within a short period of time (1 month). Just go into your local bank or credit union and put $500-$1,000 into a secured account, then use this account like an ATM card on your day to day expenses. Just make sure you are capable of paying back the balance in full each month, which leads me to my next piece of advice.

2) Pay your bills early, often and for more than is due each month. When you are first starting off on building credit open a store credit card, e.g. Macy's, Target, BestBuy, etc...Then make purchases you can afford, so you can take these small, easy steps to beat the computer algorithm the credit agencies use to make your score. For example, if you have a $100 balance on a credit card, then pay $35 three times each month. This way you are paying 1) early; 2) often; and 3) and for more than is due each month.

3) Finance a vehicle/appliance. If you can afford the monthly payments and if you are in need of a new vehicle/appliance, then go ahead and finance one! A lot of people do not think a bank will grant them financing after filing bankruptcy, but the truth is that it is fairly easy to obtain financing even while you are in a bankruptcy. I've had several clients purchase vehicles while still paying on their Chapter 13 and Chapter 11 reorganization plans. This is a great way to establish you are a stable financially again.

Ultimately, you may have a ding on your credit, but there is nothing stopping you from re-building your score by putting good marks on your report. Try these 3 steps and let us know if they help.

Good luck credit building!

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