Seven Steps To Rebuilding Your Credit After Bankruptcy

Steps to Rebuilding Your CreditStep 1: Start rebuilding your credit right after your bankruptcy is discharged. Many debtors feel that they never want a credit card or any type of debt after they file bankruptcy. While that sentiment is understandable, it is counterproductive to rebuilding credit because in order for a bankruptcy debtor to improve their credit score they must apply for credit.  The longer you delay this process the longer it will take to rebuild your credit score and history.

Step 2: Apply for a variety of credit; credit cards, personal loans, mortgages and car loans will all help to improve your credit score and history after bankruptcy.

Step 3:  Make sure you pay all of your debts on-time after bankruptcy.  Late payments can do serious damage to your credit score and destroy all the hard work that went into rebuilding your post-bankruptcy credit.

Step4:  Make sure that any credit companies you do business with report to the major credit reporting bureaus.  That way your on-time payments and the amount of credit you have been granted will be reported on your credit history.

Step 5: Do not abuse your credit lines after bankruptcy.  One of the most common things debtors do after bankruptcy is go out and gouge themselves on credit/debt again.  It is very important that debtors control their urge to over use credit cards and other debt instruments after they emerge from bankruptcy.

Step 6: Be prepared for financial emergencies.  One of the biggest reasons that debtors end up in debt is that they do not have enough cash on hand to deal with an emergency that requires an influx of cash.

Step 7: Get insured.  Medical bills and lawsuits related to car accidents can wipe out even an otherwise financially healthy debtor. By carrying adequate insurance post-bankruptcy debtors can avoid medical debt and accident related lawsuits.

By | 2017-12-13T01:51:16+00:00 June 12th, 2010|After Bankruptcy, Credit Counseling, Managing Your Finances|Comments Off on Seven Steps To Rebuilding Your Credit After Bankruptcy