Believe it or not, there is life after bankruptcy, and that includes obtaining credit again. The first thing you will notice once you have been discharged from bankruptcy is that there is no longer any stress related to your debts. Your first aim should be to keep it that way. Your second aim should be to rebuild your credit worthiness, and it can be done. Although your bankruptcy data will still appear on your credit report for the next ten years, that doesn’t mean you cannot get credit – it does mean that lenders will be cautious, but then, so too should you.

Rebuilding your credit worthiness is not as hard as it sounds. Follow these steps and you will be well on the way to fully recovering from bankruptcy.

  • Get your credit report – Obtain a copy of your credit report and go over it carefully. If there are any inaccuracies, get them corrected now.  If you are going to make a clean start, then your credit history should be correct from day one.
  • Learn to manage your money – Be brave and learn how to manage your money. If you need money management counseling, then seek it. A good credit history starts by managing what you have first.
  • Avoid credit – Don’t be tempted to take on credit too early. Post bankruptcy credit, particularly some credit cards, can be more expensive than they are worth. Their interest rates are high and sometimes the annual fees are as large as your credit limit, often as low as $500. Be patient and wait. Traditional lenders will eventually offer you post bankruptcy credit and it will be on much more favorable terms.
  • Stay current – Where you do have bills – for example, rent, utilities, child support, and taxes – be sure to stay up to date on all of them. Once reasonable credit does become available, you need to be able to point to these regular on-time payments as proof of your ability to pay on time.
  • Enjoy the freedom – My final tip is simple. You’re debt free – enjoy it while you can, perhaps even put some away. A good savings record can work wonders when it comes to rebuilding your credit.

You can recover from bankruptcy. It will take several years before you are able to access credit of any note, but your philosophy should be that this is good. You can recover psychologically before re-entering the credit game – hopefully this time you can stay on top of everything.

Related posts:

  1. Is There A Life After Bankruptcy?