Rebuilding Your Credit Score After Bankruptcy

July 10, 2012 by  Filed under: Bankruptcy 

For many people who are beginning the bankruptcy process, the looming question they ask about the future is, “How will I ever have good credit again?” It’s a good question. Credit, after all, is what makes our world go around. You need credit for all kinds of crucial reasons, from getting a decent job to renting a place to live. And, of course, should you ever need a loan, you definitely want to have a good credit score in order to avoid through-the-roof interest rates!

The good news for you is that even after filing for bankruptcy, you can still have a good credit score. And, with the right approach, and smart money management, getting a good credit score shouldn’t take too long! This article will help walk you through the process of re-establishing your credit score in your new post-bankruptcy life!

Areas of Focus

Of course, you aren’t going to be able to get credit immediately after filing for bankruptcy. So, one of the best ways to get started is with the murky in-between interstitial waters of credit and debit: the secured credit card. The secured card functions like a credit card, but isn’t truly a credit card because you front the money. It’s a safe way for a lending institution to “give you credit” because should you default, they already have the money to cover you. Paying off one of these cards on time and in full is a great way to build rapport with a lender, and to boost your credit score.

After a while, you’ll be able to get an unsecured credit card (read: a good, old-fashioned credit card). Because your score is still low, the interest rates will be astronomical… which is fine, as long as you’re paying off your balance at the end of every month! This is a big step in getting back in the credit game.

Try seeking a loan from a major lending institution. While you may have your own reasons for wanting to get a loan from a local or small creditor, it’s recommended that you go after the big names. Right now, after coming out of bankruptcy, your focus is boosting a score. And, that process is most effective when you are borrowing from bigger institutions.

No matter what, don’t give up. Establishing credit is hard enough for eighteen year olds with no financial history. It’s going to be a challenge for you after having gone through bankruptcy. However, it is possible, and the rewards are great. Stick with it. Be persistent. Let us know if we can do anything to help you! Your new life begins now, and it’s up to you to make the most of it!

Christopher M, of Lee Law Firm, understands that financial hardships can affect honest, hard-working people. His early experience growing up in a very blue collar family in a rural area of Indiana, made a significant impression on his business philosophy today. As a child, he watched his family struggle as money didn’t come easy and his parent work hard to provide for their family. As a bankruptcy attorney in Dallas, TX his practice has given him the opportunity to directly impact the lives of many people. For more information visit:

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