How to Make a Credit Score Higher After Bankruptcy

Declaring bankruptcy is a humbling time. After completing a bankruptcy procedure, many people think it is impossible to rebuild their credit, and panic about the future. In reality, there are several steps you can take to restore your credit and get your financial life back on the right track. If you act quickly, it will limit the damage to your credit score.

Things You'll Need

• Credit report

Instructions

1. Contact Equifax, Transunion, and Experian to get your detailed credit report. Look over the credit report for any inaccuracies, and report anything that is incorrect.

2. Take care of all non-discharged debts as quickly as possible, including mortgage or car payments, and student loans. In addition, make sure to pay all future bills on time. Staying current with your bills will demonstrate you are once again financially capable and independent.

3. Pay for small purchases with one, secured credit card after filing for bankruptcy. Do not take out more than one credit card, and always pay the monthly payments on time. Gradually build up the credit limit for the card, and always pay the complete balance every month.

4. Refrain from taking out loans or increasing your credit card limit unless you are completely sure you will be able to pay these sums at the end of the month.

Tips & Warnings

• Consult with a credit counselor, accountant, or financial advisor, as each person's financial situation is unique.

References

• Law Margulies: How To Rebuild Your Credit Score After Filing For Bankruptcy