3 Ways to Reestablish Credit After Bankruptcy | personal finance ...

Once you?ve discharged all your debts you?re done worrying about your finances for a while, right? Wrong. Now that you have this on your record you?re going to have a difficult time doing anything with your history following you around, but once you establish some new history for your report of positive activity you?ll have a much easier time. The three ways to reestablish credit after bankruptcy listed below will get you headed in the right direction towards getting a decent score again. If you?re persistent you can have an acceptable rating in as little as two years.

Secured credit cards are probably the fastest and simplest option. They are built specifically to establish, or reestablish, credit. You can start these at your bank. Make sure you use the card lightly, using less than 30% of your limit and paying it off each month.

CD (certificate of deposit) secured loans are typically done with the idea of building some financial history. Not every bank offers these so make sure it?s an option before starting a CD.

If you have a loan that you were unable to discharge with your other debt, like a federal student loan, this a good opportunity to build some positive history. Even if you?ve had a bad history with this in the past, you can now focus on making timely payments (you have to pay it off eventually anyway, right?) and paying it off. Sometimes they will offer you the ability to pay so much for a certain period of time in some kind of credit program where they will then take their negative marks off your report, consider asking them about this.

No matter what you do, the important thing is to do something. With all the difficulties in the past it?s tempting to step out of the financial game, but your situation will never improve this way. The important thing is to make some kind of plan, with a thought out budget, and reestablish credit after bankruptcy.

About the Author

The more you know, the better. For more information about secured credit cards after bankruptcy and all of your options for your finances check out my site, Build Credit After Bankruptcy.

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