How To Build Your Credit After Bankruptcy

By Author: Nick Bankruptcy
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If you have chosen bankruptcy Chapter 7 or Chapter 13 to ease your financial hardships, then you may be looking for ways to raise your credit score back up. It is true that after filing bankruptcy your credit score is going to decline a bit, but that doesn't mean you won't receive credit again. With the right amount of work and effort you can definitely repair your credit after filing bankruptcy.

There are important things you need to know when reconstructing your credit after bankruptcy. First it is likely you will receive some sort of credit after bankruptcy, you might get a high interest credit card in the mail or permitted for some sort of loan, this okay, but you must pay you bills in a timely manner. Not missing one payment is the key to transforming your credit. If you do miss one, your credit will take another large hit and it will set you back even further.

Keep in mind that a credit card or store card will be one of the quickest ways to raise that credit score. If you receive one of this after bankruptcy, you can charge a very low amount on it each month, say twenty dollars and then pay it off ...
... each and every month. This will help you credit score improve quickly.

Remember the first key step, don't miss a payment and do not pay it late, this is very vital. In order to achieve this, you must abstain from charging more then you can handle paying off each month. Don't talk yourself into charging too much, ten to twenty dollars is all you need to charge. Anymore than that, then you know your starting to abuse the credit card and your not actually using to help increase your credit score.

Another good idea is to take a money and debt management class, there are many held by non-profit organizations. These classes are very helpful in teaching you how to organize your finances and hold on to extra cash. Also knowing how to manage your money in general is a very useful skill to have and your future will only benefit from the knowledge.

Getting a loan after bankruptcy is usually possible after about two years of increasing your credit. If you have a faultless record for paying all your bills; credit cards, utility bills and rent on time, banks may grand you for a loan. Usually you will have to have a 3 to 5 percent deposit to put down. This is another good reason to learn money management skills after you declare bankruptcy, because hopefully in two years you have been good with your finances and have this money to give to the lender.

Those two years you spend increasing your credit score, it is important that you have a job and a regular income for the last two years. This is another big thing your personal lender will look at before approving you for a bigger loan.

A lot of people worry that after a bankruptcy discharge it will take 7 years before they can ever purchase anything more expensive, like a car or home. But you can see that with the right amount of work and effort you can get approved for a loan much before that.
Nick writes articles and provides news to help clients learn about filing chapter 7 and chapter 13 bankruptcy. Find the information you need to get credit card debt help, by visiting our site using the links above