Rebuild Credit after Bankruptcy through Four Simple Steps

Yes, you have read it right! It is possible to rebuild your credit history even during the term of bankruptcy. You need not wait for seven to ten years before you try to recover your financial health.

rebuild credit score

Most of the people who have had bankruptcy waited for their bad marks to close before they started rebuilding their credit. They waited for a minimum of seven years for their bad credit reports to be finally dropped. Then, they made changes to their lifestyles, spending habits, and money management. Eventually, they succeeded in bouncing back from bankruptcy.

But, it is still better to work on improving your credit score right away. You can do this even after you have filed or declared bankruptcy. How is this possible?

We have provided below four simple steps that will help you rebuild credit. By employing these steps, you can work on improving your credit standing, despite having a bad credit report.

Steps to Recover Credit Health after a Bankruptcy

Step 1:  Perform a Perception Makeover. Though bankruptcy may have negative connotations, you need to focus on its benefits. Remember that this option eliminates much of your debts. It also stops all forms of collection activities. This will surely give you peace of mind and less anxiety.

Also though it taints your records in the three credit report bureaus, its influence will just be temporary. As soon as it closes, negative effects are minimized as well This means that you can easily rebuild your credit history. And you can have a fresh start from all forms of credit. Just think that it is possible to regain good credit. In the end, you will reap the rewards of restoring your credit health.

[Article: Your DIY Credit Repair Guide]

Step 2: Consistently monitor your credit records. It is advised that you should check your credit report at least every four to six months. Contact any of the three credit report bureaus and obtain a copy of your records. Make sure that all the information in it is accurate. Review all the bankruptcy-related records. This way you can immediately have the errors fixed. After all, an erroneous credit report can significantly reduce your credit score.

[Article:  How to Get Your Free Credit Report ]

Step 3: Open a savings account. You are encouraged to open a bank account. Since you have a fresh start from the credit, you must try to save this time. Try saving at least 25% of your monthly earnings. Then deposit this amount to your savings account. Once you have several hundred dollars worth of savings, you can easily apply for a secured credit card. But, remember to get only a credit card that provides decent terms. Make sure that the credit card company reports to the three credit bureaus. This way you can be assured of pulling your credit scores up.

Step 4: Make it a habit to pay your charges on time. Always remember to make on-time payments on all your bills. By constantly making prudent payments, you are gaining plus factors in your credit report. This may require you to somehow live below your means. But for sure you will find this little sacrifice worth your while.

By simply employing these steps, you can immediately embark on your quest to rebuild your credit, even right after bankruptcy.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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