Rebuilding your credit after bankruptcy

On Behalf of | Dec 27, 2022 | Chapter 11, Chapter 13, Chapter 7 |

Filing for bankruptcy and having your debts discharged could be one of the best decisions you have ever made. You are ready to start over without the burden of overwhelming debt.

Although bankruptcy was the right choice for you, you are likely to still face some challenges in the aftermath of your bankruptcy. Many New York residents worry about being able to buy a house or rebuild credit after bankruptcy.

Rebuilding credit is a slow process

There are several things that you can do to help rebuild your credit. Patience is important since the process of rebuilding credit takes time.

The first step is to make sure that your current credit reports are accurate. Obtain copies of your credit reports and carefully review all information. Contact credit agencies to correct any incorrect or outdated information.

Before your bankruptcy, tracking your credit score may not have been something you did that often. Keep an eye on it more frequently after your bankruptcy. A monthly check can give you an idea of where things stand.

Get a secure credit card or loan

Contrary to popular belief, you can still get loans or credit cards after bankruptcy. Try to get a secured credit card with a small balance or see if you can take out a small loan. Ask someone to co-sign if this helps you get approved.

You will probably only get approved for a small credit limit or loan amount, but that is the idea. Your goal is to not get trapped with massive balances that you cannot pay again. Make payments on time every month or pay off the balance altogether.

 Become an authorized user

If you cannot get approved for anything, see if you can become an authorized user on someone else’s account. Verify that the payment activity is reported to credit bureaus. This is an excellent way to slowly rebuild your credit.

The best ways to rebuild your credit can depend on your personal situation. A bankruptcy attorney can not only help you through the bankruptcy process but provide advice on rebuilding your credit.

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