Rebuilding Your Credit After Bankruptcy
Daniela P. Romero, Esq.
I’ve found that many people are worried about filing for bankruptcy because they are concerned about how long it will take to rebuild their credit. I often tell them that it is easier to rebuild their credit than they think because they will have gotten rid of many of the expenses that they had prior to the bankruptcy. Additionally, if you’re credit is already bad from excessive late payments, then bankruptcy will improve your credit rating after your debts are discharged.
The first thing you should do after your bankruptcy is discharged is get a credit card. You may be able to get an unsecured card, but if not, then you should get a secured card. If you continue to make your payments on time, then your credit rating with the credit bureaus will improve.
Next, you should obtain a secured line of credit, possibly with a store that sells electronics, televisions, refrigerators or other home goods. Make sure that you continue to make your payments on time. After about a year, you can apply for a car loan which will help rebuild your credit even further. Finally, about two to three years after your bankruptcy, you can apply for a home loan.
Rebuilding your credit after bankruptcy is not as hard as it seems. Taking the necessary steps I outlined above and continuing to pay your bills on time should put you on the road to good credit again.