Rebuilding Credit After a Federal Criminal Conviction

Rebuilding Credit After a Federal Criminal Conviction

Having a criminal record can make it really hard to get your finances back on track. A lot of people struggle with this. I want to help anyone whose gone through the justice system and is now trying to rebuild their credit. This article will give you some practical tips and information to help you move forward.

The Impact of Incarceration on Your Credit

When your locked up, it can be really hard to keep up with your financial obligations. You have no income coming in, and any debts you had before (credit cards, auto loans, etc) are still there accruing interest and payments. This can quickly damage your credit score and credit history.

Some other ways incarceration can impact your credit:

• Missed payments on debts – this will lower your credit score and show up negatively on your credit report
• Accounts going into collections from lack of payment
• Maxing out credit cards or credit lines without ability to pay
• Potential identity theft or fraud if you can’t monitor credit while locked up

So what can you do once your out to start rebuilding your credit? Here’s some tips:

Get Your Free Annual Credit Report

The first thing I’d recommend is going to AnnualCreditReport.com and getting your free credit report from each of the three credit bureaus – Experian, Equifax, and TransUnion. This will show you exactly what’s reporting on your credit right now and if there are any errors you need to dispute.

Under federal law, every consumer can get a free credit report from each of the credit bureaus once per year. Take advantage of this! It’s important to know what your dealing with.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

Dispute Any Errors

If you find incorrect information on your credit reports – accounts that aren’t yours, payments listed that you didn’t miss, etc – you have the right to dispute this with the credit bureaus. Simply write them a letter identifying the error and include copies of any evidence you have (like bank statements, court documents, etc).

The credit bureau usually has 30 days to investigate the dispute. If they can’t verify the information is accurate, they must remove it from your credit report.

Consider Getting a Secured Credit Card

One of the best ways to rebuild credit is to get a new line of credit, use it responsibly by making on-time payments, and start establishing positive payment history. But with bad credit, it can be hard to get approved for a “regular” unsecured credit card.

That’s why I recommend looking into secured credit cards if needed. These require an upfront security deposit that becomes your credit limit. So it’s less risky for the card issuer. But responsible use can go a long way in rebuilding your score.

Just make sure to avoid cards with high fees and read the fine print carefully.

See If You Qualify for a Credit-Builder Loan

Similar to secured cards, credit-builder loans can help establish positive credit history. These loans hold the money you borrow in a bank account while you make monthly payments. Once paid off, you get the money back plus you now have a paid installment loan on your credit.

Banks and credit unions sometimes offer credit-builder loans. Or you can look into companies like Self Lender or Credit Strong.

Ask Creditors for Goodwill Deletions

If you have late payments or other negative marks from when you were incarcerated, you could try asking creditors for a “goodwill deletion.” This is when they voluntarily remove the negative item out of good faith.

You’ll want to write them a letter explaining your situation and taking responsibility. Emphasize that you’re now in a better place and trying to rebuild your financial life. There’s no guarantee of success, but it doesn’t hurt to politely ask.

Pay Down Debts

To improve your credit, you’ll need to get all accounts current and start paying down balances. I know – easier said than done. But even small steps will make a difference. Here are some tips:

• Prioritize paying down credit cards and other debts that are accruing high interest
• Consider debt consolidation loans or balance transfer cards to lower interest rates
• If needed, set up payment plans with creditors and collection agencies – something is better than nothing
• Stick to a budget that allocates some money every month to chip away at balances

Reducing your overall debt burden will help improve your credit utilization ratio – a key factor in credit scores.

Wait It Out

Now for the hardest part – patience! Rebuilding credit takes time. The impact of negative information starts to decrease after 6 months to a year. After 7 years, most items drop off your credit reports completely.

So if you stay focused on positive financial habits – paying bills on time, keeping balances low, checking credit reports, etc. – your credit score will slowly but surely improve.

Avoid “Quick Fix” Credit Repair Scams

When trying to rebuild credit, watch out for companies promising to “erase bad credit” or “create a new credit identity.” Those are huge red flags for scams.

Under the Credit Repair Organizations Act, no one can legally remove accurate negative information from your credit reports. So be very wary of any company that claims they can.

Stick to legitimate ways to improve your credit, like the steps outlined above. There are no shortcuts when it comes to credit repair!

Take Control of Your Financial Future

Rebuilding your credit after incarceration may seem daunting, but taking it step-by-step will set you up for success. Check your credit reports, dispute errors, open new responsible accounts, reduce debts – these are all proven ways to improve your score over time.

Most importantly, don’t get discouraged! There are lots of resources out there to help people in your situation get back on stable financial ground. You can do this!