Repairing Your Credit Score After Bankruptcy

You may already be aware that bankruptcy can be one of the worst things to happen to your credit. Not only will it cause your credit score to drop, but it will also stay on your credit report for a number of years. This financial situation may seem like something you can never come back from, but there are ways you can start to slowly repair your credit. The key thing to remember in this situation is to have patience. Some forms of bankruptcy could be on a report up to 10 years, so it will take a little bit of work. Here are a few ways you can repair your credit score after bankruptcy:

Inspect your credit report
You first need to figure out where your finances currently stand and create an end goal that is attainable. One way you can go about this is by checking your credit report. This can be a handy tool to have along the way to track your progress and make sure you're going in the right direction. Off the bat, check to see that there are no errors on the report. A mistake won't be the main cause of your bankruptcy, but fixing little inconsistencies and making sure the bankruptcy is reflected on the right account will still make a difference.

Make payments on time
The simplest thing you can do is to continue paying your credit card bills. It may not seem like it is having an effect, but whittling down your balances and making on-time payments are noticed by lenders and credit card companies.

Apply for new debt later
Adding new debt to your name seems counterproductive, but eventually you may need to take out another loan. This does not mean you should fill out an application for a new credit card a week after you file for bankruptcy. Wait until after the bankruptcy has been discharged. You want to be conservative at first, so try applying for a secured card and pay off the bill each month.

Don't close accounts
Good credit can improve your situation, and if you close one of your existing accounts, you will hurt your finances. This will toss away all the good credit you have earned and cause your credit score to drop, which is the last thing you need at this time.