Bankruptcy & Rebuilding Credit

Rebuild Credit – There is Life After Bankruptcy!

Many people have a misconception that after you file for bankruptcy your credit is ruined for 10 years. In fact, that is not true! Your ability to rebuild credit after filing bankruptcy is better than you think. After you get your bankruptcy discharge, you will receive many solicitations from credit card companies and lenders  offering to finance homes, vehicles and credit cards. Choose your new credit cards wisely and start rebuilding your credit immediately.

Here are some tips to responsibly and successfully rebuild credit:

  1. Open a checking or savings account after your bankruptcy is discharged. This will determine that you can handle your money responsibly
  2. Apply for store and gas credit cards instead of using cash
  3. Apply for a secured card (this is when you deposit cash and charge against it) and Pay advances back over two months.
  4. For one year pay your utility bills and rent or mortgage on time.
  5. Try to cosign a loan onto a responsible friend, it won’t impact them but by them making payments you will reap the rewards
  6. Look for car dealers and mortgage brokers that are bankruptcy friendly.
  7. DO NOT go to payday loan type of establishments
  8. Write a letter to Equifax, Transunion and Experian explaining the circumstances that lead to you filing for bankruptcy.

By implementing this 8 step process you will be able to consistently grow your FICO score and hopefully will reestablish your credit within the first 6 to 8 months.