Rebuilding Credit

While there is no way to have the bankruptcy removed early, there are steps you can take almost immediately following your bankruptcy discharge to begin repairing and rebuilding your credit. Most consumers are pleasantly surprised by how quickly their credit scores improve after the bankruptcy is completed.

Apply for a Credit Card

Even with a bankruptcy on your report, you may be surprised to find that you in fact may qualify for a major credit card, especially if you have a steady job. Of course, if overspending put you into bankruptcy in the first place, be careful with your spending, and make sure that you have learned how to use credit cards wisely without losing control of your ability to repay.

If you can’t qualify for an unsecured credit card, you may be able to obtain a secured credit card. With a secured card, you provide the company with a cash deposit as security and are extended credit to the amount of your deposit. Your cash deposit also earns interest for you. Although this isn’t really credit in the true sense of the word, using the card regularly, charging only a portion of the available credit, and paying the balance every month will put positive marks on your credit report.

Check Your Credit Report

If your credit report shows accounts as overdue when the debts were actually discharged in bankruptcy, contact the credit reporting agency to correct that error. There are three main credit reporting agencies (Equifax, TransUnion, and Experian), and you will want to check them all. You are entitled to one free report from each company each year. Once you have cleared up any errors on all three reports, a good way to monitor your credit report is to order a report from a different agency every four months.

Pay Your Bills… On Time

If you have debts that were not discharged in bankruptcy, such as student loans or a car loan that you reaffirmed, work at making those payments on time and paying off the debt as quickly as you comfortably can. Reducing your debt load while establishing a clean payment history will improve your credit score and place more bright marks on your report to balance out the bankruptcy.

Help with Bankruptcy and Beyond

Our firm is dedicated to guiding people through the tough times in bankruptcy to help them get back on their feet and stay there. If you are concerned about what life after bankruptcy will look like, contact bankruptcy attorney Sina Maghsoudi for a free consultation.