How to Rebuild Your Credit After Bankruptcy Your ability to rebuild credit after filing bankruptcy is better than it has ever been. After you get your discharge, you will need to rebuild your credit. Debtfreebankruptcy.com can assist you in rebuilding your credit. Our friendly, experienced staff will assist you in contacting the credit bureaus, establishing new lines of credit, and preparing you for life after declaring bankruptcy. 10 Ways to Rebuild Your Credit After a 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 that you would normally pay cash. | | 3. | Apply for a secured card where you deposit cash and charge against it. Pay advances back over two months so that they will be reflected as positive marks on your credit report. | | 4. | Pay your bills on time, especially your daily and monthly bills like utilities and rent on time for at least a year. | | 5. | If you are able, 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 do not get hit with the depreciation that occurs during the first two years of a new car purchase. Make your payments on time. | | 7. | Stay away from payday loans and other high interest, short-term loan institutions that are at high interest rates and are a "bad credit" trap. | | 8. | Write a letter to each credit reporting agency explaining the circumstances that lead to you filing. Check your credit report. | | 9. | You must 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 ABSOLUTELY NEED. As a rule, your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle. | | 10. | Always pay your reaffirmed, pre-bankruptcy debts on time. |
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