You have struggled to pay your bills, and that has been reflected in your credit score. Now in the 400s, your score is nearly as low as it can be. You know that you won’t be able to get more credit, and you don’t see a way to improve your situation with any other method but bankruptcy.
If you do decide to go through bankruptcy, you know it will stay on your record. Will it make your credit worse? Probably not. In fact, you could see it start to rebound pretty quickly. Here are three ways you can help it on its way to recovery.
Pay your bills in full and on time
To start with, a good way to get your credit moving upward is to pay your bills on time. Many utility companies will report if you miss or make payments, which can help your credit improve.
Get a low-limit, secured credit card
Another way to start building your credit back up is to get a low-limit, secured credit card. To get one of these, you may need to put down the entire limit of the card as a deposit. For example, for a $300 card limit, you might have to give the company $300. Then, you can use the card freely.
Get a car loan, even at a higher interest rate
Though it’s not usually a good idea to get a car loan at a high-interest rate, if you can get a cosigner to help or you’re able to offset the interest by paying more than you owe each month, this can be a good solution.
With these tips, you can start improving your credit immediately. It may take time, but you’ll see improvements soon.