How to Fix Your Credit After Filing Bankruptcy

By Larry Amon

  • Overview

    Once you've filed for bankruptcy, you may think you'll never have good credit again. You may even think that credit got you into trouble, so you might as well leave it behind. But you need credit to even do things that don't require credit. For instance, some potential employers look at your credit history before hiring you, and it is critical to have good credit to get some government or defense jobs. Your credit can be fixed after bankruptcy, you just have to be purposeful and patient.
    • Step 1

      Pay according to the terms of your bankruptcy. If you just finished filing and have terms and conditions associated with your bankruptcy, then follow them, and pay everything on time or a little early.
    • Step 2

      Pay off everyone to whom you owe money. If there is anyone you owe money to, pay him off as soon as you can. This includes personal loans, too. If you need someone to vouch for you or your credit, friends and others who have been paid what they were promised can honestly say that you keep your word. Even if you don't have to, pay companies to whom you owe money.

    • Step 3

      Get a copy of your credit report that has all three credit bureaus' listings. Call the credit bureau if there are any mistakes listed, such as bills that aren't yours or if it shows that you still owe money, which you have paid. Check back and make sure the credit listings are correct.
    • Step 4

      Get a secured credit card. This is a credit card where you deposit money and they give you a credit limit up to what you have deposited or a little bit more than you have deposited. It's not really meant to be used the same as cash, but it will help you build up credit if you pay your bill on time every month. Be sure to pay it completely every month.
    • Step 5

      Open a savings account. Even if it's just a little, save some money on a regular basis.
    • Step 6

      Open a checking account, and only pay your bills with your checks after you are sure the money is in the account. Link your savings account as an overdraft for your checking.
    • Step 7

      Pay your bills on time, and get utilities and other bills in your name. Showing that you are responsible and can pay your bills on time helps. Often, credit issuers require you to show a bill in your name.
    • Skill: Moderate
    • Ingredients:
    • Copy of your credit report
    • Tip: Be patient.
    • Warning:
    • Be careful not to fall back into debt.

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