How to Rebuild Your Credit After a Bankruptcy : Fix Your Credit Score

Declaring bankruptcy may seem like the worst thing one can do to one’s credit standing, and while it does do significant damage to it, it is not the end of the world, financially. People who have filed personal bankruptcy have been able to re-enter the world of credit just a short time after doing so. The following information will offer some helpful ideas about how to rebuild your credit after a bankruptcy.


Phoenix, AZ -- (SBWIRE) -- 10/22/2012 -- Into each life a little rain must fall is a much-quoted truth, especially when it comes to money mishaps. Sometimes, one has an unexpected change in one’s fortunes, resulting in that person having difficulty making his mortgage payments and staying current on other monthly bills. Unfortunately for some, these financial setbacks can be so severe the best option is to file for bankruptcy. Once they have done so, they face the question of how to go about rebuilding your credit after bankruptcy. Here are some suggestions that might help.

Rebuild Credit after Bankruptcy

Surprisingly, such things as rebuild your credit cards do exist, and they can go a long way toward helping one rebuild his credit standing. They are called secured credit cards, and they work like this: One puts a specific amount of money into an account with a lender. That lender then gives the person a line of credit equal to that amount, and the person begins to use the card wisely. The secured card is used exactly as an unsecured one would be and has monthly payments due which must be paid in full and on time every month. The more an individual employs his secured credit card for purchases then pays it off, the more his credit improves.

Here are some other intelligent ideas about how to rebuild your credit after bankruptcy. Open a savings or checking account strictly for the purpose of bill paying. Do not use the account for anything other than bill payment, and schedule all payments just before they’re due to build a respectable payment history. Apply for a gas card and make the payments on it in full and on time, building better credit as time passes. See if a family member or good friend will allow oneself to become an authorized user on his or her credit card. While not actually making purchases with the card, one will benefit from the positive credit history the cardholder has, improving one’s credit ability. Look into obtaining a small installment loan with a cosigner, then make all of the payments in a timely fashion.

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