Working to Rebuild Credit After Bankruptcy

Filing for bankruptcy is not anyone’s first choice. However, sometimes finances and credit problems become so out of hand that it is virtually necessary to declare bankruptcy. Often times there are circumstances that cause people to have difficulties with their credit and a hard time paying their bills. There are steps you can take to begin the task of rebuilding your credit after bankruptcy.

You will first want to take a look at your credit rating. Order a copy of your credit report so that you know where you stand. It is better to now what your credit looks like now so that you can begin preparing for the future. There are some steps you can take and methods to try in order to begin rebuilding your credit after you have declared bankruptcy.

One way rather simple way to start the process of rebuilding credit is to apply for a secured credit card. With this type of credit card, you will have an account in which you will deposit money. This account will be liked to your credit card. The amount of your deposit will be equal to or in some times greater than your credit limit. You can use a secure credit card to begin rebuilding credit as most of these cards will report to credit reporting agencies. Be sure to pay your bills on time to ensure a positive report

Another options after bankruptcy is to apply for credit from a source that does not have such strict lending standards. This may be the case with a department store credit car or a store line of credit. For example, you may be able to get a line of credit at the local hardware store. Apply for credit and when approved make some small purchases each month. You can even pay your balance off in full each month. This is yet another way to slowly begin building your credit history again. Just remember the important of paying your bills on time each month.

If you have recently declared bankruptcy, you may want to try to obtain a small installment loan. This is a good start to building a fresh credit history. You can make your loan payments each month. Take your time paying off the loan so that you have an established amount of time paying on a loan that can be reported on your credit report. This method is not always possible in the beginning. However, you may want to consider finding out if anyone would be willing to cosign for you a loan.

One of the most important things you can do to help your credit in the future is to make sure you do not get yourself into a situation like before when you needed to declared bankruptcy. Do not take on more credit than you can manage. Have a budget and include all your bills and payments so that you can keep organized and be certain that you pay your bills on time each and very month. You may have better credit faster than you think.