You can’t get around the fact that you just went through a stressful time. Bankruptcy hits you in ways that linger for years. One thing that’s going to take a big hit is your credit score, but the following are a few tips to help you out.
Remaining Debt
A common misconception is that all debt gets cleared away when you go through bankruptcy. The chances are you’ve still got some outstanding debt after this ordeal, so find out what was left. Make it a priority to pay these outstanding debts as soon as possible. Don’t be satisfied paying the minimum if you can somehow pay a little more. Your goal is to get rid of debt as soon as you’re able to. It will be challenging, but if you want to improve your credit score, this is what must be done.
Reliable Income
You might think cash flow is all you need, but lenders love to see you keep your job. You’ve just gone through a significant financial earthquake. You want to show lenders you’re stable now, and to do that, you want to keep the job you have. Don’t job hunt, at least not while you are working to build credit up again. Try to remember this when you go job hunting. Make sure that the job you apply to is something you can stay with for a long time.
Get a New Card
Be sure to open up a new credit card as soon as possible. Yes, opening up a card right now is going to be more challenging. You get hit with harsher interest rates or low credit limits. None of this matters. What matters is that you get a credit card and pay what you borrow as soon as possible. There are several credit cards or loans you can get after going through bankruptcy to improve your score as much as possible. For example, a secured credit card allows you to build your credit by lending only what you put on the card. You get $1000 if you deposit that amount beforehand.
Get a Cosigner
Another step you can take to build your credit is to get a cosigner. You can get a cosigner to help you get an apartment, a new car, or even buy a house. The thing is you have to get someone willing to be your cosigner. This person promises to be on the hook for the debt if you end up not paying back what you borrowed. That’s a big commitment, so make sure you’re ready to ask someone to have this much faith in you. Making your payments on time will help you immensely, and you’ll be able to take on a much bigger loan.
Ensure Reporting
Not every lender or creditor has to report to the credit report bureaus, which is essential to keep in mind. Talk to your creditors or lenders to make sure they are reporting your activity to the bureaus. You want to show your positive activity as much as possible to improve your score. What’s more, rent, utilities, and mobile payments are subject to these reports. This type of activity isn’t always counted, but it might be, which is the reason you should make sure it’s all reported. If you’re lucky, they get calculated when you’re paying in full on time every month, so your score improves.
Now, you know how to build your credit after going through bankruptcy. Hopefully, this is the only time you have to worry about improving your credit score for these reasons.
