How to Build Credit After Bankruptcy

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4 Ways to Build Credit After Bankruptcy - wikiHow/**/var WH = WH || {};WH.lang = WH.lang || {};button_swap = button_unswap = function(){};WH.exitTimerStartTime = (new Date()).getTime();WH.mergeLang = function(A){for(i in A){v=A[i];if(typeof v==='string'){WH.lang[i]=v;}}}; Sign Up or Log In or Log In via Follow us on Pinterest
HomeArticlesCommunityMy Profile WH.translationData = {'es': {'msg':"\u00bfTe gustar\u00eda saber Como reestablecer tu cr\u00e9dito despu\u00e9s de la bancarrota? \u00a1Lee acerca de eso en espa\u00f1ol!"}};WH.mergeLang({'navlist_collapse': '- collapse','navlist_expand': '+ expand'});EditHome » Categories » Finance and Business » Managing Your Money » BankruptcyHow to Build Credit After BankruptcyEdited by Chris Hadley, Maluniu, Jmuddy95, Teresa and 5 othersPin ItArticle EditDiscussAchieving a good credit score can be a realistic goal after filing for bankruptcy. You can build credit after bankruptcy by making wise financial decisions. Live within your means and use credit accounts sparingly. Make payments on time. Ensure building a good credit score is something you are committed to doing. Building credit after bankruptcy takes time, but happens through careful planning. EditSteps
Maintain Current Loans1In many states, an individual filing bankruptcy can keep mortgages and car loans. These loans are a good tool for rebuilding credit.

2Make payments to mortgage lenders and on car loans on time each month.

3Pay more than the minimum payment whenever possible.

4Give the process time to help you establish a strong payment history on your credit report.


Use Secured Credit Cards1Secured credit cards are deposit-based cards that can help you build credit after bankruptcy. A deposit is necessary to establish the credit line. Then, you can use the credit card as you would any credit card.

2Ensure the secured card reports to the 3 national credit bureaus monthly so it helps to build your credit history.

3Make monthly payments on the secured credit card on time, since on-time payments account for as much as 35% of your credit score.

4Use the card minimally and keep the balance as low as possible to keep your debt-to-credit-limit ratio low.


Check Your Credit Report1Monitor your credit report on a regular basis. You may notice the discharge of your bankruptcy about a month after it becomes official. Debts filed in bankruptcy should also be on the credit report.

2File a claim with the credit agency if the credit report does not list the bankruptcy discharge after 60 days.

3Ensure all other details on the credit report are accurate to avoid any additional, negative findings.

4Be sure that inquiries come off your report after 2 years. Other debts and collections will remain for 7 years while bankruptcies will remain on the report for 10 years.


Apply for Credit Cards1Some credit card lenders will send credit card offers to you within 6 to 9 months after the bankruptcy has been discharged. Accept only the best, but realize these are just the beginning.

2You want to accept at least one of these cards to help you to establish a good credit rating.

3Do not accept more than 1-to-3 credit lines over a period of six months, as this will negatively affect your credit score.

4Choose cards wisely, monitoring the costs of them including interest rates, application fees, annual fees and set-up fees.

5Keep the balance on these cards low and pay them on time each month.



Edit Video


Edit TipsBe careful not to apply for too many loans at one time. This can have a negative impact on your credit score.You can obtain a free copy of your credit report 1 time per year from each of the three national credit bureaus, TransUnion, Experian and Equifax. This can help you check your report frequently for errors.Auto and mortgage lenders may be willing to offer credit to an individual within 18 months to 2 years of the discharge of bankruptcy. Use these loans to help you to reestablish your credit score.
Edit Related wikiHowsHow to File For Personal Bankruptcy in CanadaHow to Find an Alternative to BankruptcyHow to Build Good CreditHow to Cut Credit Card DebtHow to Live Within Your Means
EditSources and Citationshttp://articles.moneycentral.msn.com/Banking/BankruptcyGuide/BounceBackFastAfterBankruptcy.aspx?page=2http://www.bankrate.com/finance/debt/life-after-bankruptcy-1.aspxhttp://www.rinnelaw.com/lawyer-attorney-1408100.htmlhttp://www.uscourts.gov/bankruptcycourts.htmlArticle Info Featured Article
Categories: Featured Articles | Bankruptcy
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