Repair Credit After Bankruptcy

Some Basics

To repair credit after bankruptcy is a very challenging yet important, but one that can be done with knowledge and determinations.

The process in itself is fairly a simple one: obtain more positive financial history marks so that your bankruptcy gets less weight in your score. We took a lot of steps to put good credit on our history and it paid off with a score that quickly rose.

The drawback to this process is that this is very time consuming.. If you do it on your own with hard work and patience it can be achieved in a period of 2-4 years. Using a restoration firm can help the process move quicker and won’t be so consuming and frustrating for you.

How to Repair Credit after Bankruptcy:

1. After bankruptcy, try to save as much money as you can and apply for a secured card. Saving funds can be easier than you think since you no longer have the major debt on which you have to make payments. Be sure to make regular purchases (within your budget) and full payments to this card every month on time. Your score will increase and your financial history will improve.

2. Once you have used your secured card for a few months, try to get a store charge. These cards can be easier to obtain than an unsecured credit card. They will not only help to improve your credit but also in getting an unsecured card in future. Remember only apply for one card at a time, then wait for 6-8 months before applying for another.

3. After a year you may qualify for a car loan. Don’t start too large. Get a loan for an inexpensive car for which you can afford payments. This will gradually enhance your score.

4. You may qualify for a low limit unsecured card once you have followed the above steps for 1-2 years. Pay your monthly payments in full for this card on time. If you do not qualify, then let your credit improve for a period of six months and then apply again.

There is no shortcut to repair credit after bankruptcy. But by having this as a single goal in mind, and working persistently, you will gradually move towards it.

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