How To Rebuild Your Credit Following Bankruptcy

Posted on: August 5, 2020, by :

You consulted with a bankruptcy attorney Howard County MD and determined that filing for bankruptcy was your best move. Now what? You’ve taken the steps to start fresh, but how can you rebuild your credit?

Can you get credit cards after being discharged from bankruptcy ...

Get a Secured Credit Card

If you want to get a credit card following a bankruptcy, you may find that doing so is difficult at first. Consider the benefit of a secured credit card. This is where you give the bank a deposit upfront, which the bank will use as your credit line. If you make on-time payments to this credit card, you can start to establish a clean credit history. 

Check Your Credit Report

Your credit report is far from perfect. Credit bureaus often forget to update accounts, which can leave you with a lower credit score. Make sure to check your credit reports regularly and dispute any inaccuracies. For example, you may see that accounts that should have been discharged weren’t. Make sure all discharged debts have a zero balance. 

Get a Free Credit Report

Did you know that the three nationwide credit bureaus must give you a free copy of your credit report each year? Consider cycling through the credit bureaus once every four months to check on the health of your credit report. For example, you can contact Equifax in April, Experian in August and TransUnion in December. Repeat the process yearly so you’re always aware of how your credit is doing.

Give It Time

The process of rebuilding credit can be long and seemingly fruitless. But give it time. A bankruptcy will remain on your credit report for seven years if you’re filing a Chapter 13 bankruptcy. For a Chapter 7, your credit report will be affected for 10 years. However, over time, the overall effect of a bankruptcy will diminish. If you are using credit responsibly, you’ll start seeing an improvement in your credit score well before those seven to 10 years.