One of the points that people who file for bankruptcy are concerned with is how they are going to rebuild their credit when the case is over. The answer to this isn’t very easy, but it is possible to rebuild your credit score over time if you are willing to work at it.
When you are going through bankruptcy, you will have to go through financial education. These are meant to teach you how to use your income to support yourself and how to prepare a budget. They also touch on how to use credit responsibly. You need to pay close attention to what you are being taught because these points can help you on your quest to rebuild your credit.
Trying to get someone to extend you credit is going to be one of your biggest challenges. At first, you will likely need to look for a secured credit card that will report to the credit bureaus. In order to get this done, you need to save up money that you can use to open the card.
Make sure that you are making payments on any credit accounts before the due dates. Late payments will harm your credit, which is fragile after a bankruptcy. Ideally, you won’t charge more than what you can pay off each month.
Eventually, you should be able to move from a secured card to a traditional credit card. Continue to apply these principles to all credit accounts and your credit score will eventually rise. Don’t think of bankruptcy as the final step in your financial history. Instead, think of it as a fresh beginning.
Source: The Huffington Post, “How to Rebuild Your Credit After Bankruptcy — Fast,” Curtis Arnold, accessed April 26, 2018
