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Re-establish Credit
How do I reestablish my good credit standing after bankruptcy?
The following are a few tips on reestablishing your credit after bankruptcy:
- Pay your reaffirmed debts on time or early.
- Contact each credit bureau to make sure each debt discharged in your bankruptcy does not continue to be reported as a delinquent debt.
- Depending on your income, you can do any of the following to help rebuild your credit. Remember your monthly income limitation. You don’t want to follow any of the tips provided here only to find out you don’t have enough money to keep up the payments.
- Establish a relationship with your local bank or credit union and open a checking or savings account.
- Establish one or more gas cards or some store payment accounts that you normally pay in cash. Use the account even if you have the cash, than pay it off over a couple of months.
- Get one or two secured credit cards. Pay the charges over more than one month rather than paying it off right away. A little positive history is very helpful.
- Ask a family member or friend to cosign for a small loan from your credit union or local bank and put the money in savings to pay back the loan.
- Buy a used car and have the dealer carry the contract. Keep your payments timely for at least one year.
- Avoid “hard money” and “payday loans”. You can never afford to pay 50% to 150% interest.
- Challenge any incorrect or bad information on your credit report.
Want to know more about credit reports? Go here...
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