Improve Credit Score after Bankruptcy

The Credit Repair Road

When it comes to help with credit many people want to know how they can improve credit score after bankruptcy.  Such a burden was lifted off our shoulders when we declared bankruptcy until we realized that we cannot get good interest rates if any after a bankruptcy. 

Then we may begin to worry how we are ever going to build up our scores again.  Yes! You can rebuild your credit history and get some credit that you deserve.  It may take a little work but you will be so happy once you get back to where you deserve to be with your credit history.

Your first step is to pull your credit report and make sure that everything on it was discharged with your bankruptcy.  Clean up anything on your report that is incorrect. This took us some time but eventually is was cleared up.

If it is not showing up as being included in your bankruptcy make sure that it was.  You will want to contact each creditor and have them fix it.

The Road to Recovery after Bankruptcy

Working to improve credit score after bankruptcy is not impossible.  There are many companies that realize that if you just claimed bankruptcy there is no longer an immediate threat to claiming bankruptcy! 

You will have to wait years before you could even think of filing a bankruptcy again.  You are less of a threat.  Some companies do not agree, so not all lenders feel this way.  This should give you hope that you have a chance to rebuild your credit.

If you had a car payment that you reaffirmed after bankruptcy, it could help you to improve your credit score after bankruptcy.   You will need to make sure you continue to make your monthly payments on time, and that will be one mark on your credit report that will always be active each month.  This will go a long way, if you make sure you are never late.  You will want to baby this line of credit, and make sure it is never held against you.

Start rebuilding to improve credit score after bankruptcy right away.  The longer you wait, the harder it could become.  If you are unable to find a bank or lender that will allow you to borrow money, you have another option. 

You could deposit money into a savings account, and ask that the bank issue you a credit card attached to that account. Credit Unions offer the best options here. This is extremely similar to a secured credit card.

There are also secure loans to help you to improve credit score after bankruptcy. The way you would do a secure loan is if you deposit money into the bank, and then take a loan out on that money. You will want to pay the interest on that money each month. Once again, make sure you are never late in paying back your loan.

You can use this as a positive on your credit report as they report each month that your loan is being paid. The money you took out could be used to pay the interest. You will want to pay back the money slowly so that you can prove that you are paying it.

We did this with three credit unions. We put $1000 into savings at the first credit union and took a $1000 loan for 3 years. Then we took the money that the credit union just loaned back to us to the second credit union and did the same thing. Then took that money and went to the third credit union and did the same thing. So now we had $1000 back in our pocket, three $1000 loans and three savings accounts with $1000 secured at each.

Sounds a little overwhelming doesn’t it. You might even be wondering how to pay back all those loans. What we did was split the $1000 we now had in our pocket among the savings accounts at the 3 credit unions and put the loans on automatic payment.

This way we were guaranteed never to be late with the loan payments. The really great thing about this type of loan is that your money is released as you pay the loan down. So you always have money in your savings account to make payments on the loans.

This process will put your credit repair on autopilot. Might I suggest that if you do this type of loan program, do it after you are discharged and with at least $1000. Why the minimum? It is a four figure number, anything lower than that is too insignificant. You are creating a new credit history for yourself.

You can improve credit score after bankruptcy with a little hard work, and patience. Do not give up after you have turned to bankruptcy. You can one day build your score back up and get the credit history you deserve. You deserve to get the lowest interest rate when you make a purchase. Just do not give up!

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