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Post-Bankruptcy Credit Rebuilding Steps

On Behalf of | Oct 27, 2016 | Life After Bankruptcy

It is possible to get loans after you declare bankruptcy. In some ways, it actually makes lenders more confident in you because you’re only allowed to use Chapter 7 bankruptcy every eight years. If you just used it, you can’t use it again to get rid of your brand new debts.

Still, to make yourself more attractive to lenders, it’s time to build your credit back up. Start off by making a budget based on your current income so that you know to the penny how much you can spend and how much you can afford to borrow.

After that, try to get some money in savings. Experts note that even $250 can help tremendously. When you have an emergency, you can cover it with these funds instead of finding yourself unable to pay.

It can also be helpful to look at your credit score, read the report, and see if there are any mistakes on it. If there are, you can sometimes have the reports corrected and the errors removed.

Then, to start building your score back up, look into your borrowing options. You may be able to make a deposit and get a secured loan or a secured credit card. The lender has the money up front, so they know you can’t fail to pay entirely. You can then use the card and pay it off like a normal card to show how reliable you are.

You can also find cards that utilize co-signers. Someone else with better credit history can help you fix yours.

As you work to rebuild your credit, it pays to know all of your options. People often think bankruptcy will haunt them for years, but, with the right mindset, you can work to get things back on track.

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