Credit After Bankruptcy

If you are looking to obtain credit after bankruptcy you must first prove to your lenders that you are financially creditable. The more financially creditable you appear the more credit you will be rewarded with.

Whether you are looking to get mortgage, loan, credit card, or line of credit there are certain steps you can take to make getting credit after bankruptcy a little easier.

Steps to Obtaining Credit After Bankruptcy:

• Get a copy of your credit report and insure that it is accurate. If you have paid off all of your creditors make sure the report notes this.
• Talk to your banker about reestablishing your credit rating and things you may be able to do to move this process along.
• Start a savings account and put aside money to use for emergencies like hospital bills and home repair.
• Join a credit union. Credit unions may offer you credit in a time when other financial institutions have rejected you.
• Apply for a secured credit card and use it wisely.
• Plan a budget for yourself that takes into account monthly expenses and any payments that need to be made for bills and loans.

Take into account that even if you have paid off all of the debt that drove you to bankruptcy, lenders will still see you as a high-risk borrower so if you are offered credit at all it may be a small amount of money with steep borrowing rates.

You may have to start small when you are applying for credit after bankruptcy. Secured credit cards and credit cards from department stores and gas stations may be the only forms of credit you are offered initially, but the longer you maintain these the more creditable you will eventually appear to future lenders.