3 Ways To Rebuild Your Credit Score After Bankruptcy

Some people think that once you file for bankruptcy, your credit score is toast for the rest of your life. They assume that you will have to rely on cash and you will never be able to pass a credit check again to get approved for a mortgage, a lease, a loan, or even a credit card.

This simply isn’t true. It’s one of the myths of bankruptcy that we’ve previously written about. In that article, we note that while credit scores range from 250 to 850, the average credit score jumps from 538 to 620 in a mere eight months following bankruptcy!

Rebuilding your credit isn’t impossible – it just takes time, and you have to be purposeful about it. Here are three ways we recommend that you can start to build up your credit score right now:

Monitor Your Credit Score

The best way to get started is just to be informed. Make sure you know what your credit score is, and monitor it regularly to note any changes. There are free services like Credit Karma that allow you to check your credit score without affecting it. You are also allowed one free credit report every year that comes directly from the three main reporting agencies: Equifax, Experian, and TransUnion. During the COVID-19 pandemic, you can even access those direct reports weekly instead of annually.  The credit reports from the three main reporting agencies do not provide you with your credit score but at least you can review the reports to make sure that they are accurate and do not contain anything that can harm your score. 

Keep Up With Regular Payments

While bankruptcy erases most (if not all) of your debt, there are often one or two remaining monthly payments left when the dust settles. It is of the utmost importance to keep up with making those payments on time. Payment history accounts for 35% of your credit score, so showing that you can be responsible to make monthly payments goes a long way.

Consider Getting New Credit

No, this isn’t a joke: the best way to build up bad credit is to get new credit. While you likely won’t be approved for an AMEX Black Card, you could get a secured or starter credit card and stay on top of the regular payments. Before you take one out, make sure that it reports to the credit bureaus so you can see your hard work start to improve your credit score.

Get the Help You Need

At Velazquez Consumer Law, LLC, we know how challenging the bankruptcy process can be – and how rewarding it can feel after. If you need help rebuilding your credit score, contact Velazquez Consumer Law, LLC today to get the advice you need! We provide solutions and shield you from surprises.

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Velazquez Consumer Law

Central to our firm is the empathetic and compassionate service we give each client that allows us to fully understand your situation and goals. Above all, our responsive and hands-on approach to your legal issues yields actual results.

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