How to Obtain Credit After Chapter 13 Bankruptcy Discharged

Finalizing your Chapter 13 bankruptcy can lift a huge burden. On the downside, filing bankruptcy has a major impact on your personal credit score, and after the discharge, it becomes extremely difficult to acquire financing. While some lenders will not approve your loan applications, it's imperative to obtain credit after a Chapter 13 bankruptcy in order to rebuild your credit. Fortunately, there are ways to acquire credit and undo past mistakes.

Instructions

1

Start over with a high-interest credit card. While these cards are not appealing, high-interest credit cards are easier to acquire than traditional cards. Demonstrate a good payment history with the credit card issuer, and they'll gradually reduce your interest rate. Compare sub-prime credit cards on websites like Creditcards.com.

2

Rebuild credit with secured credit cards. Save about $500 for a security deposit and then apply for a secured credit card with your bank or another financial institution that provides these accounts. You'll be required to open a savings account with the bank, and the amount deposited into this account will reflect your credit limit.

3

Get an auto loan. Because your automobile secures an auto loan, it's possible to acquire a vehicle loan after a Chapter 13 discharge. Expect a higher finance rate and payment. Skip big dealerships and purchase the car from auto dealers who work with bad credit applicants.

4

Join another person's account. Ask your spouse, sibling or parent (with good credit) to add your name as an authorized account user on their credit card. This positive account will appear on your credit report and help rebuild your credit after a Chapter 13 discharge.