How to Rebuild Credit in Los Angeles After Bankruptcy?

love2u2 • December 27, 2015 • No Comments

Your credit score is imperative. For some, it means the world to them.

After filing a bankruptcy, you may worry how long it will take for you to rebuild credit in Los Angeles or increase your score.

For many debtors, a bankruptcy is a way to significantly improve their low credit score. After you file a Chapter 7 bankruptcy, your FICO score will go up. The reason for this is that the ratio for your debt to income has also improved.

The key to rebuild credit in Los Angeles is to convince lenders that you’re creditworthy.

How are you going to persuade them that you’re definitely creditworthy?

One of the fist things that you must do is to evaluate your spending habits and create a plan that can help you manage your finances.

You may also apply for a secured credit card at a local bank. To obtain such credit card, you will need to give your bank an amount of money. In return, the bank will give you a secured credit that you can use when purchasing items up to the credit limit provided by the bank.

Use the card when you make an everyday purchase. But you must monitor your spending activity. Don’t overspend. This will help demonstrate to your lenders that you can manage your finances.


When you use your secured card prudently, you may request the bank to increase your spending limit. It’s also a must that you remind your bank to report your credit history to those credit agencies, namely, Experian, TransUnion and Equifax.

Now, once you have established a solid finance management through a secured card, it’s now time for you to apply for an unsecured credit card and obtain a high credit spending limit. If your bank approved your application, make sure that you have understood the fine print before using the card.

The goal of having an unsecured credit card is to help you pay your balance in full, every month. Your bank will see that you’re indeed a good payer now. It will show the bank that you can pay the balance in full and be able to manage your credit.

When you have your unsecured credit card, you should never pay the minimum balance. Why? It’s a trap. Most creditors want you to pay only the minimum balance so you will be left with higher interest rates.

If you’re still struggling to rebuild credit in Los Angeles, please call Kardjian & Escobar Law office for consultation at 323-426-8300

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