How to Rebuild Your Credit after a Bankruptcy

Posted by & filed under Chapter 13 Debt Relief, Chapter 7 Debt Relief, General Bankruptcy.


Your life will change in a number of ways after filing bankruptcy. Some of these things will actually be positive though. Obviously, you file bankruptcy because your debts are starting to become too much for you. With bankruptcy behind you, those debts will be a thing of the past (minus some exceptions). However, there will be a number of negative consequences as well. One of the main ones will be that your credit will be shot.


Before we get to the best way to rebuild your credit, let’s cover what not to do. Many people get sucked into believing that certain credit card companies will actually help them rebuild their score. While many reputable credit card companies may still offer you a card, the majority of them will probably only do so if they can place massive restrictions on your spending.

However, there is a select group of companies that claim they will give you a card and that their main goal is to help you rehabilitate your credit score. What they’re actually doing, though, is waiting for you to slip up so they can slap you with huge fines. Should you decide to cut up the card and send it back, their fine print will make sure you then owe them hundreds of dollars for the offense.

Instead of falling for this trick, get $500 together and put it in a savings account. Then take out a $500 loan from that same bank. They’ll give it to you, despite your credit score, because they’ll put a “hold” on the savings account that has the same amount in it. Now, just be sure you make all your payments on time. After 90 days, you’ll have credit with a reputable credit union or bank. It’s not much, but it’s a start and far better than the alternative.


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