Rebuilding credit after bankruptcy is a subject that anyone emerging from bankruptcy discharge should take very seriously. Your credit score has taken a huge blow and is going to need a lot of nurturing and tender loving care. Restoring credit after a bankruptcy requires discipline and knowledge. The discipline portion of it is up to you. The knowledge part is gained through reading and researching articles such as this. So, let's get started shall we?
First and foremost, you must get a copy of your credit report from each of the three major credit bureaus: Experian, Equifax and TransUnion. The reason for doing this is to make sure that any past debts that were included in your bankruptcy have been removed from your credit report. It is very common for one or two past debts that were included in your bankruptcy to still show up on your credit report. If this is not straightened out it will prove to be detrimental to your efforts to rebuild your credit score.
The best way to start rebuilding credit after bankruptcy is to apply for and obtain a secured credit card. If you don't know what a secured credit card is, here is a brief explanation: A secured credit card works something like a debit card, meaning you must have money deposited in a bank account and then you charge off of that amount. But, unlike a debit card you are required to replace the money that you have charged and also pay interest on the amount charged. When shopping around for a secured credit card look for a card with a low annual fee and as low as possible interest-rate. Once you have one card and you have begun to reestablish your credit by making your payments on time or preferably early, you can then shop around for another card and follow the same routine.
A second way to help with rebuilding credit after bankruptcy is to take out a loan on a cheap used car. I doubt you'll be able to do this until at least six months have passed since your discharge. Another downside to this particular method of credit recovery is that you will have to pay a very high interest rate at first. But, if you do your due diligence and pay your bills on time you can then sell the car or trade it in and refinance another vehicle at a lower rate. Continuing the cycle will eventually get your interest rate down to a more reasonable level.
Both of these methods may seem hard to stomach to most people and I can understand that. It can be very difficult rebuilding credit after bankruptcy but it is very important to reestablish your credit for later in life. Perhaps, someday you may want to buy your own home or get a loan to send your son or daughter to college.