A Guide to Building Credit After Bankruptcy
- 1). When it comes to building credit after bankruptcy you need to be organized both within your personal and financial life. Being organized means knowing how much money you have coming in, your expenses, and what you are doing to better your credit score. If you find it difficult to stay organized there is nothing wrong with keeping track on paper.
- 2). It is difficult to build credit after bankruptcy. A bankruptcy is going to bring your credit score down. But if you are determined to work hard you can increase your score over time, even if it takes several years.
- 3). To build credit you need to show that you are no longer a risk to creditors. The best way to do this is by paying your bills on time, and adding new credit when possible. You will have to take on a higher interest rate when applying for a loan. Even though this is a burden now, showing that you can responsibly pay back a loan (credit card, car loan, etc.) will make things better on you in the long run.
- 4). You can get professional help if you do not know how to get started. Although you have to pay for this assistance, you should look at it as an investment in your future.
- 5). Your credit report will show your bankruptcy for at least seven years. In some cases, this may be reported for up to 10 years. You do not have to wait this long to begin to build your credit, but you should realize that it will take a couple of years to notice an increase in your credit score. Time is something that you have, so use it to your advantage when attempting to rebuild your credit after bankruptcy.
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