How to Fix Credit Scores After Chapter 13 Bankruptcy

Filing a Chapter 13 bankruptcy reduces your credit score, and because you need help managing your outstanding debts, future lenders reviewing your credit applications may feel hesitant to extend a line of credit. While a Chapter 13 bankruptcy hurts your overall credit rating, bureaus delete this negative mark from your credit report after seven years. In the interim, it's best to take steps to improve your unfavorable credit rating.

Instructions

1

Apply for credit immediately after your bankruptcy. Fixing your credit score after a bankruptcy necessitates acquiring new credit and making better credit decisions. Acquire credit by requesting a secured credit card from your bank or another financial institution, or by adding your name to another person's credit card to become an authorized user on their account.

2

Make remaining loan payments as agreed upon. Exclude your auto loan or student loan from a bankruptcy filing and continue to send in these payments to your creditors on time to help improve credit after a Chapter 13.

3

Use cash and avoid credit card debt. Learn to live on cash and only use credit cards for emergencies and when you can afford to pay off a charge within a few weeks or a month.

4

Enroll in credit counseling. Repeating past mistakes can trigger future debt problems. Research local or online free credit counseling services to learn how to budget your money and manage debt better. Understanding how credit scoring works can help you achieve a good credit rating.