How to Improve Your Credit Score After Bankruptcy

No one wants to have to file for bankruptcy, but it can sometimes be the best option for your situation. Filing for bankruptcy will make your credit score lower. The penalties of a bankruptcy last for seven to ten years. Fortunately, there are things you can do to improve your credit score after bankruptcy.

Make Payments On Time

Bankruptcy might, or might not, wipe out all of your debts. You may be left with some debts that you need to pay off. It might be easier to pay those debts on time if you have been released from paying several of your other debts. Making payments on time will help improve your credit score.

Don't forget to continue paying your other bills on time. Bankruptcy typically requires people to keep paying things like rent, utilities, and premiums.

Get a Secured Credit Card

A secured credit card requires people to give the lender a deposit that is equal to the maximum credit line on the card. You can use a secured credit card much like you would a regular one. The difference is, if you fail to make a payment, the lender can keep your deposit to make up for it.

A secure credit card forces people to really think about how much they are spending. Use it wisely, and it can help improve your credit score after bankruptcy.

Check Your Credit Report

Your bankruptcy may have resulted in having some of your debts removed. Get a copy of your credit report and check it closely. Are those debts still on there? Contact the credit bureaus and ask to have those debts removed.

Be Patient

It is not possible to improve your credit score after bankruptcy in just one day. The best thing to do is be patient. Move very slowly when considering adding a new credit card. Your smart choices will eventually result in an improved credit score.