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 > How to Repair Credit After Bankruptcy |
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Repairing
your credit after a bankruptcy can be hard, but it can be done. Your focus
should be on gaining positive accounts on your credit report that will age
as your bankruptcy does. So, while your bankruptcy gets further into the
past, your good accounts get older as well and you will have positive,
recent credit history built up. It is important to remember to wait to get
new credit until your situation (the one that caused you to file for
bankruptcy) has changed.
Instructions
Step 1
Get a secured card. With this kind of card, you will send the company a
deposit and they will send you a card with your deposit amount as the credit
limit. The card will work like any other credit card and you will receive
your deposit back (assuming you don't default) when you have build enough
history with the company.
Step 2
Apply for a store card. These can be easier to get than regular credit
cards, so it is your best bet after having a secured card or two for about a
year. If you cannot get approved for a store card, then you are probably not
ready to apply for an unsecured credit card after your bankruptcy.
Step 3
See about qualifying for a car loan or small personal loan to repair your
credit. With the way FICO scoring is set up, you need variety on your credit
report. Besides positive revolving accounts, you also need some positive
installment accounts. A car loan or small personal loan will be easiest to
qualify for.
Step 4
Try for a credit card. Once you have successfully established history with a
secured card, store card, and installment account, you are ready for the big
leagues. This is the best time to apply for an unsecured Visa, Mastercard,
Discover or American Express credit card. If you are denied, let your
accounts age for another six months and try again. Before you know it, your
bankruptcy will be a distant memory.
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