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10 Ways To Rebuild Your Credit After Bankruptcy

Once you file for Chapter 7 Bankruptcy or Chapter 13 bankruptcy, it stays on your credit report for a number of years. However, that doesn’t mean it’s impossible for you to rebuild your credit in that time. In fact, your ability to rebuild your credit after bankruptcy is probably better than it’s ever been. It’s time to take advantage of this opportunity and start your financial life fresh. Here are ten ways you can start to rebuild your credit after bankruptcy.

  1. Open a checking or savings account. Lenders may look at this to determine if you can responsibly handle money.
  2. Apply for store and gas credit cards where you would normally pay cash. Pay these off on time each month.
  3. Apply for a secured card where you deposit cash and charge against it. Pay advances back over two months so that they are reflected as positive marks on your credit report.
  4. Pay your utility bills and rent on time for at least a year.
  5. Find a friend or relative to cosign for you on a loan and pay it on time.
  6. Look for car dealers and mortgage brokers that attest to be "bankruptcy friendly." Buy a used car so you’re not hit with the depreciation that occurs during the first two years of a new car purchase.
  7. Stay away from payday loans at high interest rates and are a "bad credit" trap.
  8. Write a letter to each credit reporting agency explaining the circumstances that led to you filing for bankruptcy in the first place.
  9. Live within your means. Do not unnecessarily increase your debt to income ratio by taking on credit to purchase luxury items that you DO NOT NEED. Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle.
  10. Pay your reaffirmed, pre-bankruptcy debts (such as mortgage or car payments) on time.

Call us toll-free today at 1-800-260-1402 for your complimentary initial bankruptcy consultation or visit one of our 100 offices across the United States. You can also read our many informative articles on our website,  For the best advice on filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy protection, trust the experienced and caring attorneys at Jacoby & Meyers Bankruptcy Law.

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