The following are some tips to start your path to reestablishing credit after bankruptcy.
- Stay on top of all your payments and do not over extend yourself.
- Will you be able to get loans approved after bankruptcy? Absolutely. You will eventually be able to get loans approved as long as you stay on top of the existing loans. Therefore, before you apply for additional credit, make sure that you can afford the payments and that your credit report is accurate. Furthermore, any loans that existed prior to bankruptcy such as a home or car loan should remain current.
- Open checking or savings account. While it may seem unimportant, lenders often look at this to determine if you can responsibly handle your finances.
- Make sure that you apply for credit post-bankruptcy. Apply for store and gas credit cards that you would normally pay cash for and make sure that they are paid timely. In addition, immediately after filing, it is a good idea to apply for a secured credit card and immediately begin using the card.
- Make sure that utility bills and rent are on time for at least a one year period.
- Immediately post-discharge, if you are applying for either a car loan or a mortgage loan, look for car dealers and mortgage brokers that attest to being bankruptcy friendly.
- Write a letter to each credit reporting agency, i.e., Equifax, Experian and TransUnion explaining the circumstances which led to the filing.
- Make sure you pay your reaffirmed pre-bankruptcy debts on time.
- Make sure your credit report is correct and if not, make sure you correct it.
While there is no exact science to re-establishing credit after bankruptcy, it is possible to obtain both secured and unsecured credit in a relatively short time post-filing. However, it is important that you take all of the aforementioned measures in helping to reestablish credit. Yes, there is life and clean credit after filing.