Ways to build up credit after bankruptcy
Depending on the type of bankruptcy you filed, a bankruptcy can remain on your credit report for up to 10 years, but rest assured that the damage is not permanent.
There are steps you can take to build your credit immediately after bankruptcy is closed and closed. Below are some ways to help you build your credit after bankruptcy.
- Regularly check your credit report for any errors – keeping an eye on your credit report can help you find and dispute any mistakes before it’s too late. Accounts that have been paid must be reported as “paid” and must have a balance of $0 for it to reflect correctly on your credit report. The bankruptcy filing date should also be considered as it remains on your report, so accuracy here is extremely important.
- Consider getting new credit – Getting new credit can be a challenge, but it’s important to keep in mind that you may still qualify for certain types of cards. Some secured cards may require an initial deposit which protects the lender and in exchange you get a credit limit which is usually equal to the deposit. Another option is a retail card, but be sure to read the fine print as many have high interest rates and penalty fees. Keep your balances low and make sure you pay monthly payments on time.
- Start a budget and stick to it – Having a budget and being able to stick to it should be your top priority. This will help keep you out of debt and distribute your income in a way that makes more sense for your financial situation. Assess the income you have on a monthly basis and from there you can work out the details of where the money should be distributed.
- Consider a credit builder or secured loan – A credit building loan is designed to help you build credit and it works differently than other types of loans. The money does not come back to you upfront, but the lender places the loan in a savings account until all payments have been made. When the term of the loan is over, you can get the money back and if you have made the payments on time, you will most likely help yourself to credit.
Rebuilding your credit after bankruptcy is entirely possible and not hopeless. If you need help getting started, don’t hesitate to call or text us today at (206) 408-8158. We look forward to hearing from you.
19803 1st Avenue S.
Normandy Park, WA 98148
Such. (206) 408-8158
F (206) 374-2810
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