Rebuilding Credit After Filing for Bankruptcy

The stress of filing for bankruptcy leaves many feeling worried about their futures. Will my credit score ever recover? Will I ever be able to buy a car or own a home? The good news is that by taking the right steps you can successfully rebuild your credit in a relatively short amount of time.

Rebuilding your credit after filing for bankruptcy is possible through careful planning and staying organized. It may also be helpful to work with a bankruptcy attorney who can provide advice about repairing and improving your credit after filing.

Tips for Rebuilding Credit

After you have filed bankruptcy and your debt has been discharged, it is important to review your credit report. Look for any errors in your personal information, account history and for any accounts that are not yours. If you see any errors, report them immediately to the credit bureau so the information can be verified and fixed.

Also be conscious of your FICO score, which is often included with your credit report. Your FICO score is determined by your credit history, late payments, current payment patterns and employment history along with other factors. Your FICO score is one of the most important factors banks consider when deciding to approve you for a loan or line of credit.

While bankruptcy does eliminate some of your debt, most people still have ongoing bills they are required to pay like rent and utilities. It is important to pay every bill on time. This begins to rebuild your credit, and demonstrates to lenders that you are financially responsible.

Another way to help rebuild your credit score after bankruptcy is by applying for a secured credit card. A secured credit card requires you to pay a deposit that will be used as collateral for the card. A secured credit card is used like any other card, and you will be billed monthly. It is important to pay this credit card off on time every month. The will help prove your credit worthiness to lenders. To that end, check to make sure your bank will report the secured card to all the credit bureaus.

If you receive an unsecured credit card offer from a bank, take it. Make sure you read the fine print, and again pay the credit card off on time every month. Never use credit cards for cash advances. You should request a credit increase every year to help improve your credit score.

Rebuilding your credit after bankruptcy can be challenging, but staying organized and consistently making your payments on time will help establish a good foundation for your financial future.