How to Fix Your Credit After Bankruptcy

It's possible to acquire A-plus credit after a bankruptcy discharge. To accomplish this, you need to build a new credit history and make every effort to avoid repeating past mistakes. With a new credit history, you are able to get a home loan and low rates on other types of financing. Sadly, some people don't learn from a bankruptcy. The key is learning how to properly manage your finances and debt.

Instructions

1

Make auto and student loan payments promptly, if applicable. Filing a bankruptcy doesn't mean you have to include all your debts in the proceeding. Some debtors keep their auto loans, and federal student loans aren't eligible for discharge. Help your credit after bankruptcy by paying these bills on time each month.

2

Put aside money for a security deposit. You likely won't qualify for an unsecured major credit card after bankruptcy. However, you'll need credit to rebuild credit. Prepare to apply for a secured credit card by setting aside $300 to $500.

3

Use your security deposit and apply for a secured credit card. Contact your personal bank or credit union and request an application for a secured credit card. Ask about start-up fees, monthly maintenance fees and annual fees.

4

Check into a small sub prime loan. Speak with a loan broker and inquire about subprime or bad-credit loans. These high-interest loans can help you build a good credit history after bankruptcy, provided you handle the account responsibly.

5

Strive to maintain a good payment record. Pay your creditors each month without delay to help your credit rating. Early payments eliminate accidental late arrivals.

6

Use credit cards with care. High debts prompt many to file bankruptcy. Limit your debt by using cash for most purchases. Only purchase with credit cards if you can realistically foresee paying off the account in full each month.