How to Rebuild Your Credit Score after Bankruptcy

Measure Fico score

After bankruptcy has been fully discharged it is important to take steps to reestablish your credit and build up your credit score.

Instructions

1. 

   First wait until your bankruptcy is discharged to really be able to build back your credit. Obtain a secured or prepaid credit card. These are much like a gift card or debit card where you put in money and draw against it then load the card up again. It is not a loan like a standard credit card.

2. Apply for new credit slowly. Many new accounts are not good for building your credit score. Obtain several credit cards if you are able and use them, but pay the balance in full every month. Try to never use more than 40% of the credit limit on any card or revolving loan. Often store credit cards like from a hardware store, department store or furniture company are easier to get after bankruptcy. Only do this if you are buying a large items or other items you need. Do not fall in the same credit traps as before and buy wants you can't afford.

3. Obtain installment loans. These are loans like car loans, In store credit for a large appliance, Tires from a tire shop. Pay these off in full as quickly as possible.

4. Do not take any new loans or use credit cards if you have not made a budget and know you can easily make the payments or pay the loan in full without being late ever. Be cautious. Avoid your old credit traps that cause the bankruptcy.

Resources

• Prepaid Credit Card Info
• Raise your FICO Score