Credit Repair

How to Build Credit after Bankruptcy?

If you are looking out for ways on how to after bankruptcy, you have finally come to the right place. However, do not expect a magic wand. All you will get here is information about some basic steps, which if you follow thoroughly and consistently can help you achieve a better credit score. It is true that bankruptcy filing remains on your credit report for around 7-10 years, but there are plenty of things that you can do to nullify its effects. Obviously, it won’t happen overnight. You must have some patience while you are working toward it. It may take anywhere from 6 months to one year or even more before you are able to see some positive results. Having the right approach and consistency in your efforts are the two key factors in this regard. The idea is to demonstrate responsibility with your finances and credit.

Review the Reasons That Pushed You toward Bankruptcy

Once the court declares you as bankrupt, the first thing that you have to do is to sit back and review all the factors that forced you to file for bankruptcy. Before you start developing your strategies on how to build credit, you must be well aware of all those things that damaged it. The reasons could be anything from poor saving habits, lack of insurance, and spending compulsion to bad financial management. The idea is to prepare a list of issues that you have to address and resolve. You cannot afford to make the same mistakes again.

Checking Your Credit Report for Errors

You are already going through the worst credit crisis. If there are errors and mistakes on your credit reports, it will only make things more difficult for you. So, the next step is to check the reports thoroughly. If you find some errors and mistakes over there, you must immediately take necessary actions to rectify the same. You will be able to start off on the right foot only if your credit report is showing correct information.

Get a Secured Credit Card

When it comes to how to build credit, one of the best strategies is to obtain a secured credit card. In this process, you will have to deposit a few hundred dollars into a bank account and request for a credit card, where the maximum limit is equal to the amount deposited by you. As soon as you get it, the credit bureaus are reported about the same. When the entries regarding secured credit card appears on your credit report, it will give a decent boost in your credit score.

Obtain an Installment Loan and Keep Paying off the Same in a Timely Manner

Your credit score reflects your ability to make the repayments on the loans that you have obtained. So, it can be a good idea to obtain some loans up to an amount that you can easily afford to repay. Though it is difficult to get loans after getting bankrupt, but it is not an impossible task. If you do a thorough research, you can find lenders and bank that are willing to offer you car loans and other loans. It is just that they will be charging you a much higher interest rate than usual. You can still go for it, as you always have an option to refinance the same on easier terms and lower rates once your credit improves.

People often wonder how to . But, as you can see, if you follow some basic strategies, you can put your finances back on track even after getting bankrupt, that too, within a matter of just a few months.


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Posted in Build Your Credit, Credit Repair | 4 Comments »

4 Responses to “How to Build Credit after Bankruptcy?”

  1. [...] after bankruptcy can be quite smooth if you manage to build a good credit once again. Here’s how to do that. The faster you do this, the faster you will be able to recover your financial situation. Your [...]

  2. abel says:

    If you want to rapid credit score after bankruptcy then you can do so and build a new credit .Most of creditor agree that bad credit entry on your credit report is nothing but a bankruptcy. It does not matter that filed chapter thirteen or seven it just demonstrate a total failure in managing your credit. The entry that you have file for the bankruptcy, stay on your credit report in between 7-10 years. Sometimes the circumstances occur for a person that he/she could not pay the debts on time. May be because of a family members suffers illness and the medical bills are beyond any health insurance.
    If your credit score in above 300-800 and if it is less then 600 (due to any reason) then you have to make some changes. In order to improve your credit score there is no special talent, skill, and training. You are the only one who can improve the credit score. You have to learn the lesson from your past and move forward. There are some local community organizations helps you if you need any counseling. There are some people who help you and they helps you in order to provide a solution for your problem.

  3. rubu says:

    If your credit score is low than it can also cost you money and job opportunities a good people may face some problems in credit score. There are so many creditors who may consider more than your credit score but the score of your credit still plays a vital role in most of the decision on whether you will grant credit and at what rate of interest you will grant a credit. In today scenario there are so many jobs who pays more than $100000 will definitely run a credit check of any applicant. There for some times the person misused there position in order to get financial gain when their temptation is to be very high. So it is advisable to every employer have to protect themselves. If your credit score are lower then you have to pay the amount with high rate of interest because high risk you represent. The rate of interest a very high that’s 1/3 part of your amount you borrow. The difficult part is that the creditors give you a second chance and in this case you have to a very careful because there are so many companies exist who will try to take the advantage of your situation. Credit industry is a business just like any other business run. The lender gives you a credit but catch is finding credit at a very high rate of interest.

  4. Albert says:

    People think that life comes to an end after Bankruptcy which is not true at all. You should study this article thoroughly and you will get wonderful tips of building your credit after this traumatic incident of your life. First thing to do is to rewind some time of your life and just have a look from the problem get started and make a list of Do’s and Don’ts for future. You will get a review of your mistakes done in past and now you have to learn from your mistakes. Make a budget plan and stick to it strictly. If you are unable to stop your spending habits, it is better to go for a secured credit card, you can get such cards by depositing a certain amount. Getting a loan can be better option to reveal your credit ability. If you repay your installments punctually, it will improve your credit score. Repayment of the installment can play a role in getting for your self a car loan or some other loans. Timely payment will be the key factor in this direction. By going through these simple steps, one can get a good credit score even after Bankruptcy

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