What is the best way to rebuild your credit after filing bankruptcy?

Answer 1

Take a look at http://www.lifeafterbankruptcy.com

Search around and you will find their section with past newsletters. Find the ones for the past month.

The recently did a series on everything you should do to improve your credit after bankruptcy. Very good info you need to read.

Answer 2

The best way to improve your entire personal financial picture is to avoid using anymore credit. Don't be a slave to your credit score. There are better ways to prove that you are a financially fit person than trying to rebuild your "I love debt" score.

Studies show that folks that use cash instead of debit and credit cards spend 10-40% less each time they shop. Which is why Visa has commercials that try to make people look bad for using cash.

1. Spend less than you make.
2. Save $50 each month as an emergency fund, instead of keeping an emergency credit card.
3. Learn to budget and save additional money for annual events like Xmas and birthdays.
4. Use a written list, and cash when you shop. If you only plan to spend $40 on groceries, only take $40 cash with you.
5. If a company insists on taking credit cards instead of debit cards, stop supporting them and switch to a competitor.
6. Learn to say "No" to anything and everything that will tempt you to apply for credit. Unless you want to end up filing for bankruptcy again. No one ever got rich from their credit card points program, but everyone gets richer when they spend less than they make.

Answer 3

After you declare bankruptcy, certain things occur. The most important thing that happens is that you get a tremendous sense of relief from having to clear off your unsecured debts. But the other side of the coin is that your creditors and lenders will start considering you risky. This will make it difficult for you to get extended credit when needed. Those lenders who agree to give you credit will charge higher rate of interest. But this gives you a chance to improve your credit after bankruptcy.

Answer 4

I used two credit cards. One from Orchard bank and one from First Premier.

I used them for everyday things like gas and food, was careful not to exceed 30% of my credit limit in any given month and paid them off in full before the due date.

After about 1-year I got two much better cards and did the same thing with them.

I raised my scroe over 150-points and was able to purchase a car at 3.9% interest and a home with no down payment and a 6.5% fixed rate.

It can be done, it just takes time and good money management.

Answer 5

Secure credit card. This is the kind where you have to deposit $500 into the account - giving you a $500 credit limit. Make a purchase here and there and pay the bills on time every month and you're on your way. When you want to cancel the account, you still get to withdraw that original $500 you deposited.

Answer 6

If you have bad or no credit and have no credit cards try to obtain two credit cards and make sure all of your monthly payments are made on time. This will help increase your credit score. If you cannot be approved for a unsecured credit card, obtain a secured credit card.

Answer 7

Start with Consumer Credit Counciling Services.

Answer 8

this is best way to rebuild your credit score visit