How to Build Credit After a Job Loss & Bankruptcy

Keeping a high credit score can prove challenging during tough economic times. Layoffs and cutbacks force many people to default on credit cards and other loans. If unable to find a quick fix, bankruptcy can become the only alternative. The effects of a bankruptcy, like a low credit score, can linger for up to 10 years. But after re-entering the job market, there are several ways to successfully repair your credit.

Instructions

1

Check the accounts on your credit report. After a bankruptcy, debts included in the proceeding should include a notation that reads "included in bankruptcy" on your credit report. If not, these creditors may continue to harass your for the delinquent balance. Order a report from Annual Credit Report and review it to make sure it is accurate.

2

Compare secured credit card fees with multiple lending institutions. Having a secured credit card helps repair bad credit after a bankruptcy. And since these require collateral, they're easier to get with a low credit score. Because fees vary, contact two or three banks and inquire about these types of cards. Ask about deposits and setup fees.

3

Get current with student loan payments. Since bankruptcies will not forgive federal student loan debts, use this debt as an opportunity to rebuild your credit history after a job loss and bankruptcy. Pay your lender on-time each month.

4

Help your credit with an auto loan. Some debtors exclude their auto or mortgage loans from a bankruptcy. Like student loans, continue to make these payments in a timely fashion. If you need an automobile, look into bad credit loans from a dealership.

5

Agree to paperless statements. Manage your debts and monthly bills with the help of the Internet. Sign up for paperless statements and pay these bills once you receive the e-mailed statements. Lower the risk of late payments by paying online.

6

Stop relying on credit to buy items. Use cash for the majority of your expenses to avoid high credit card debt. When you need to use a credit card, pay off the entire balance by the next due date.