Rebuilding Your Credit After Filing Bankruptcy

How to Rebuild Your Credit After Declaring a Bankruptcy;

Despite the common myths you may have heard about declaring bankruptcy and the impact it has on your credit record and score, rebuilding your credit worthiness is not as hard as it may seem. There are several financial tools you can use to rebuild your credit after declaring bankruptcy. If you are considering filing for a bankruptcy, but are unsure as to how your credit will be impacted for doing so, this article may provide you with some insights.

1. Get a Secured Credit Card to Rebuild Credit;

You can use a secured credit card to rebuild credit after declaring bankruptcy. A secured credit card requires you to make a deposit against the card's credit limit. Your credit card limit will be a percentage of your security deposit, or the exact deposit amount. A secured credit card works just like a standard credit card. When you make a purchase using the card, you will have to pay the balance owed. This is perfect because you have the cash needed (the deposit) to pay the balance off. So how does a secured credit card help you rebuild credit? Secured credit card lenders generally report your credit activity to the three main credit bureaus: Equifax, Experian and TransUnion. Making payments on time will help you rebuild credit after declaring bankruptcy. Some companies will charge you penalties and interest if you fail to make a payment, or charge over-the-limit on a transaction. Late payments will also be reported to the credit bureaus.

2. Use Store Credit Cards Wisely;

Open a store credit card in a place that you typically pay for purchases in cash. Start charging these purchases to your store charge card. After each purchase, immediately pay the balance owed on the card. Most stores allow you to pay at the register on your account, or at customer service. Do not leave the store without paying the balance owed and pay off your balance on time. This is a great way to rebuild credit after declaring bankruptcyin Oklahoma. You do not have to worry about keeping a balance on a credit card, or missing a payment.

3. Pay Your Bills On Time;

It should go without saying, but you must continue to pay your bills on time. There are new credit reporting agencies that include non-traditional bill payments into your credit history. For instance, Payment Reporting Builds Credit (PRBC) is a new credit-reporting agency that allows you to build credit through evidence of paying routine monthly bills on time. Rebuilding your credit after declaring bankruptcy will take patience and time. Most importantly, you must demonstrate to your creditors that you will be financially responsible for the credit you obtain. In some circumstances, you may be able to obtain a car loan the day after having your qualified debts totally discharged through bankruptcy. Further, it can take anywhere between 18 to 24 months before a bankrupt consumer can obtain a mortgage loan after having thier qualified debts discharged through bankruptcy.

4. Stay away from predatory lending scams and payday loans;

Some predatory lenders look for credit-impaired consumers and charge them outrageous fees for borrowing money. Payday loans also cause severe financial problems as a result of the fees for taking out the loan from the company. While restoring your credit, make sure you review your credit score and report on a yearly basis.

Ian Smiles is a legal content writer in Oklahoma. He writes articles for Tulsa County bankruptcy attorneys and bankruptcy websites in the State. His bankruptcy articles are well written and done in a manner that is intended to make the complex law of bankruptcy easyier to understand. Find out more about is writings at:

This article was published on 25 Jul 2014 and has been viewed 495 times
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