Rebuild Your Credit After a Bankruptcy

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Filing for bankruptcy will help you obtain financial relief and give you a fresh start. It can eliminate a majority, if not all, of your unsecured debts, but it will also hurt your credit for a time after you file. A Chapter 7 bankruptcy will stay on your credit report for 10 years after discharge, and a Chapter 13 bankruptcy will stay on for 7 years; therefore, after your bankruptcy discharge, it is extremely important to start repairing your credit.

Tips for Boosting Your Credit Score

You went through a long process with yourbankruptcyto get a clean slate. Take advantage of your newfound freedoms from creditors and lenders and become financially responsible. After all, you do not want to end up in the same situation in the future.

Here are some helpful tips to start rebuilding your credit:

• Pay your bills on time - Paying your monthly bills on time is a surefire way to rebuild your credit. Paying bills on time makes up about 35% of your credit score. Pay on time and your score will start to rise.
• Use secured credit cards - Using a secured credit card (one that requires a cash collateral deposit) is an excellent way to rebuild credit after your bankruptcy. Remember to use it responsibly, make smaller purchases, keep low balances, and pay off the card in full each month.
• Join a credit union - Credit unions are smaller, member-owned institutions that use more criteria than traditional banks when giving out credit and loans. Contact your local credit union for more information about how to apply for an account or a loan.
• Add a loan - A year or two after your bankruptcy is over, apply for a car loan or a line of credit (try going through a credit union). You need different types of credit to rebuild, so having a loan will add to the rebuilding process. Just make sure your monthly payments are affordable, and of course, pay on time.
• Become an authorized user on a credit card - Have someone add you as an authorized user on their card. Their credit history will then typically be reported on your report. Just make sure that person makes their payments on time and that you do too so that neither off your credit scores are adversely affected by the relationship!
• Know your credit limits - Once you have credit cards again, know your credit limit and keep the balances low on each account. Use the cards sparingly, and pay each bill off in full each month.

Work with a Rancho Cucamonga Bankruptcy Attorney

These are just a sample of the many ways you can start to rebuild your credit after your bankruptcy. Always remember that the key to rebuilding your credit is to spend within your means and purchase responsibly. Make a budget, stick with it, and always pay your bills in time!

Contact Atlantis Law for more credit restoration tips.