Articles You Want

Putting your credit back together after bankruptcy isn’t easy, but it can definitely be done. Instead of moping around thinking that you’ll never get back on your financial feet, you can take some active steps to repair your credit. Here are just a few of the first steps that you should take.

For one thing, be sure that you pay all your bills on time. Even after bankruptcy, you’ll probably have to pay rent, electricity, and maybe even make a car payment. Even if these payments aren’t regularly reported to a credit reporting agency, you can bet that you will be reported if you go into lien on any payments, which will only tank your credit score further.

Another thing that you can do is to use certain types of credit cards very wisely. Chances are likely that credit cards are at least part of the reason that you filed for bankruptcy in the first place, but don’t be afraid to use a little credit to rebuild your credit. One of the ways that you can do this is to get a secured credit card. This type of card will require a deposit, so you can get one even if you have a terrible credit score.

Essentially, you’ll make, say, a $200 deposit towards a secure credit card, and then your credit limit will be $200. If you spend all the way up to your limit but don’t make your payment on time, the card company will be able to pay your card for you from the deposit. However, if you do use the credit card sparingly and pay it off at the end of every month, your good behavior will be reported to the credit reporting companies, so your credit score can slowly be rebuilt.

After you’ve had a secured credit card for a while, you may want to move on to an unsecured credit card. Once your credit is in the average range, there are plenty of companies that will give you a card like this. A higher credit limit may make the card more tempting to use unwisely, but keep in mind that it also will probably have a higher interest rate.

Really, rebuilding your credit score takes patience and perseverance. You’ll be able to get more credit as your score improves, and the more credit you use wisely, the more quickly your credit score will improve.

Stephen Marlowe is a Bankruptcy Lawyer based out of Tipp City, Ohio and writes about Bankruptcy Issues for Ohio Residents learn more about your options for getting credit after bankruptcy when you visit http://debtreliefohio.org/credit-after-bankruptcy/.