After you file for bankruptcy, your credit score will take a dive. However, that doesn't mean it has to stay low for years to come. There are a few things you can do to rebuild your credit after a bankruptcy filing. Here are three things you should consider doing to improve your credit score.
Open a Secured Credit Card As Soon as Possible
After you have filed for bankruptcy, it's possible that you have filed bankruptcy against all of your credit cards. This may leave you without one. And while you may think it's best to stay away from credit cards after filing, this thinking can hurt you in the future. Applying for and getting a new credit card is the best way to start showing that you can be responsible again. But after filing, most companies may be leery of offering you credit. As such, a secured card may be the only type of card you qualify for. This requires you to put money down, such as $500, and in exchange, you will get a $500 credit limit. If you make your payments on time for one to two years, the deposit will be returned to you and your card will be converted to a regular card. If you don't, the company has your deposit and can use it to pay what you owe.
Piggyback Off of Someone Else's Credit
Another way to rebuild your credit after filing bankruptcy is to piggyback off of someone else's credit. Ask a trusted friend or family member to be added to one of their high limit, established credit cards as an authorized user. Having this information on your credit report will instantly boost your score.
Pay Your Debts on Time
The last way you can rebuild your credit score after filing bankruptcy is to make sure you pay your debts on time. Late payments hurt your score and if you are trying to reestablish yourself, you can't have that happen. Pay your debts on time to show that you are responsible and worthy of a second chance after your bankruptcy filing.
To talk to a professional bankruptcy attorney about your case, contact Vivian Law Firm PLC today!