Steps to improving your credit score after declaring Bankruptcy

STEP 1: 

After declaring bankruptcy, it is important to pay your bills on time and in full. After a bankruptcy, the most important factor in improving your credit score is creating a good payment history. Setting up automatic payments from your checking account can be a good way to avoid mailing bills late or missing payments entirely.  As your Bankruptcy Attorney will advise, you need to pay your bills.

STEP 2: 

 Obtain an updated copy of your credit report after you have filed your Chapter 7 Bankruptcy and make sure that all discharged debts were addressed in your bankruptcy and are listed as having no balance remaining on your report.  Make sure that your bankruptcy gave you a Fresh Start.

STEP 3: 

Once you have completed your Chapter 7 Bankruptcy it is important to apply for a credit card. Because of your recent bankruptcy, you may have difficulty finding a credit card company that will issue you a card. There are companies that will deal exclusively with Chapter 7 and Chapter 13 Bankruptcy victims.  Any potential card that deals with bankruptcy victims is almost certain to have a very low spending limit and very high interest.

  If you are unable to get a credit card because of your recent bankruptcy. You should get a secured credit card if you cannot find a traditional credit card with rates you can afford. Secured credit cards require you to put up money equivalent to your spending limit as collateral. Typically, after a year or two, if you've paid your balance in full every month, you will be able to get a regular credit card and your credit score will continue to grow putting the Chapter 7 Bankruptcy even farther behind you.

 Remember why you had to file bankruptcy?  Avoid making the same mistakes again. Don't repeat the errors that forced you into bankruptcy. Take the time to learn how to budget and make good financial decisions.