How to Get New Credit After Bankruptcy

Getting credit after bankruptcy isn't as difficult as you may think. Two years after filing for bankruptcy, you may qualify for a loan at an interest rate equivalent to the rate you could have received before filing. However, your down payment, income and debt ratio become more important factors.

Difficulty: Moderate

Instructions

1. Get free copies of your credit report at Annual Credit Report. The big three reporting agencies are Equifax, Experian and TransUnion. Information often varies between them.

2. Correct errors on your credit report. Write a letter to all three bureaus detailing the errors to launch an investigation.

3. Talk to your local banker. Explain how you're trying to rebuild your credit and take out a small personal loan.

4. Apply for a low interest credit card with a small credit limit. You can also look into a secured credit card.

5. Build a savings account.

6. Make all your new payments on time. Getting behind will hurt your credit rebuilding efforts.

Tips & Warnings

• Annual Credit Report offers reports from all three agencies once a year without your accepting any other services.
• Bankruptcy isn't any more damaging to your credit than the events leading to it.
• Interest rates will be higher, and your insurance rates may go up immediately following bankruptcy.
• Bankruptcy stays on your credit report for 10 years.

Resources

• Bank Rate offers tips on repairing your credit report errors.
• Kiplinger gives sound financial advice.
• Get a free copy of your credit reports (no strings attached) at Annual Credit Report.

Who Can Help Sponsored

• A Bad Credit Score is 598 or Below. Checking your own Credit Report won't affect your score! See instantly for $0 by Experian® www.FreeCreditReport.com