Tips for Rebuilding Credit after Bankruptcy:
- If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.
- Get a couple secured credit cards. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)
- Once you have new credit, use it wisely. If it is a credit card keep the balance at or below 20% of the limit at all times. This is not meant to buy you freedom, rather to build your credit.
- Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well.
While it does take time, there is definitely life (and credit) after bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust.
Summit Mortgage Corporation