Filing bankruptcy offers an effective way to regain control of your finances, reduce your stress, and get back on solid ground. While it isn’t uncommon to lose some assets, and your credit will take a hit, most agree these sacrifices are worth it.
Once your bankruptcy is approved, it’s time to get to work. It’s up to you to take the right steps to begin rebuilding your credit.
Keep up with your payments
You may have credit accounts you didn’t include in the bankruptcy. If this is the case, make sure you are making timely payments. If possible, pay slightly more than the minimum each month, which can help your credit rating.
Consider applying for a secured credit card
After your credit takes a hit, you probably won’t be approved for many (if any) unsecured credit cards. With a secured credit card, you can start using credit again and rebuilding your credit without any real risk.
Become an authorized user on someone else’s account
If you have a family member with relatively good credit and several credit accounts, you can ask them about becoming an authorized user. The payments they make will appear on your credit report, which can help you as you rebuild your credit.
Avoid falling back into bad financial habits
It’s easy to fall into bad habits when you start getting credit back. You have to take steps to make sure this doesn’t happen. If necessary, enroll in credit counseling to help you with this.
Rebuilding your credit after bankruptcy
After filing for bankruptcy, trying to rebuild your credit can be challenging. While this is true, you can take steps to help restore your financial health and benefit from the bankruptcy filing.