4 Steps to Repairing Your Credit After Bankruptcy

Bankruptcy can leave an undeniable mark on your personal credit history for years into the future - often as long as a decade. Bankruptcy boldly says to your creditors that you are more than willing to walk away from the debts that you owe, leaving them stuck "holding the bag". Contrary to bankruptcy myth, however, those who have filed for bankruptcy protection can rebuild their credit, often in as few as two years following the discharge of their debts. Let's look at some of the fastest ways to rebuild your FICO credit score and your borrowing reputation in the weeks and months following the end of your bankruptcy.

Bankruptcy Credit Repair Tip #1: Check Your Credit Report

During the first few weeks following the discharge of your bankruptcy, the lenders and creditors listed in your bankruptcy will notify the major credit reporting bureaus (Experian, Equifax, and Trans Union)that your debt with them has been discharged. It is important that you pull your own credit report with all three of the bureaus to determine that this all-important notation has been made. You are entitled to one free copy of your credit report with all of the bureaus one time each year - although there is usually a charge for viewing your score. Dispute any accounts that don't show this notation to make sure that your bankruptcy gives you a clean slate. Bankruptcy Credit Repair Tip #2: Establish Bank Accounts If you haven't already, now is the time to establish both a checking account and a savings account. Although neither will help your credit score, it does make you appear to be a more responsible borrower to have these accounts, and the savings account will be useful in helping you reach savings goals that should be set following bankruptcy.

Bankruptcy Credit Repair Tip #3: Establish a Credit Card Account

One of the most vital steps to rebuilding your post-bankruptcy credit file is to open one or more secured credit card accounts. A secured credit card is simply a credit card that requires you to deposit money into an account in an amount equal to your credit line in order to receive "credit". These types of cards feature monthly or quarterly reporting to the major bureaus and can really help to rebuild your file fast. Be sure to use your secured post-bankruptcy card with caution, however, because you really cannot afford to have any late payment notations on top of your bankruptcy. Run a 30% balance and make timely payments - this is one of the fastest ways to add points.

Bankruptcy Credit Repair Tip #4: Work with a Credit Repair Service

A great option that many borrowers choose to take advantage of post-bankruptcy is to work with a credit repair service. Oftentimes, credit repair services can help a borrower better understand the problems that those who are fresh out of bankruptcy face and how to work through their financial situation to come out on top.