How to Improve Your Credit after Bankruptcy

Going through bankruptcy can be an uneasy emotional process for you.  You can be left wondering how bankruptcy will affect you, your family, your finances, and even your credit.  There is no doubt that filing bankruptcy has a negative impact on your credit.  After all, it is something that will remain on your credit report for about 7-10 years.  This doesn’t mean you can’t improve your credit, though.  The following are some things you can do it improve your credit.

First things first, look over your credit report to see where you are at.  Once you know what your credit score is you can set a credit score goal and begin the process in building your score.  One of the biggest (and easiest) things to keep yourself on track is to pay your bills on time.  About 35% of your credit score is composed of your payment history.  This includes your phone bill, internet bill, car bill, etc.  Now this next step might seem a bit intimidating given the bankruptcy process you just went through, but you should consider getting a credit card account.  Much like your bills, paying your credit cards off on their due dates will help to improve your credit, you don’t want to go up and beyond your limit, though.  Try to use your card as little as often, or for lower cost items and then make sure to pay the card off by the due date. Another thing to remember is that you do not want to close out on one.  This will damage your credit more than benefit it.  All this will do will reduce “the amount of credit you have available to you.”  If you feel you are not going to make payments in a timely manner, just shred the card and leave the account open.

After some time has passed since your bankruptcy was discharged, you should look into getting a loan for some type of property such as a car. This doesn’t mean go buy the most expensive car on the lot, instead you should focus on a car that you know is in your price range.  A car you’re confident you can pay off.

By following these tips, you are giving yourself a higher chance of improving your credit score.  Much like a workout, you are not going to see results over night.  Building up your credit after filing for bankruptcy will take time; but as long as you’re patient and are aware of your financial limits, you should be able to make some progress in achieving your credit score goal.

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

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