Credit After Bankruptcy Discharge –
Some Tips on Credit Repair After
By Treesa Kintrick
Credit After Bankruptcy Discharge - Some Tips On Credit Repair After
Bankruptcy is not the end of the world. Depending on the type of bankruptcy you went
through you can get back on your financial feet within a couple of years but it takes hard
work and dedication to making good financial decisions. Credit after bankruptcy
discharge takes a long time and requires you to make only the best decisions so you need
to be smart and follow this little guide to credit repair after bankruptcy.
A bankruptcy will follow you around for quite a while. If you took the high road and used
a Chapter 7 then it could be on your credit report for 10 years or more. If you used a
Chapter 11 then it could fall off your report sooner depending on how long it takes to
satisfy the creditors.
But credit repair after bankruptcy in either case is not impossible, you just have to learn
to live within your means which can be tough because living outside your means may
have gotten you in trouble in the first place – primarily unsecured credit cards. However,
there are a great many families who had to take bankruptcy because of mounting medical
bills which has nothing to do with irresponsible spending, there is a difference here.
Either way, wanting to establish good credit is a good thing and can happen with hard
work and determination.
What To Do:
1. The first thing is to pay your bills and pay them on time. Now more than ever
utility bills, insurance and all sorts of bills you would never expect are tied to your
2. Set a budget. If money is still tight because of job loss, pay the house payment or
rent and all utilities first. Look at how you can lower your utilities to put some
extra money back into YOUR pocket. Call the company that handles your utilities
and see if they offer any programs that can assist you in lowering your utility bills
for free or cheap. Don’t buy into something that costs more money then you
3. The newer TV’s and an excellent antenna can usually bring in several stations
very clearly. If that’s the case, cancel cable and put more money into your
4. Talk to your bank or credit union on how to establish good credit and see what
they can do to help you out. If they offer some type of plan do exactly as they say
which will show financial responsibility on your end. Also, don’t be discouraged
if you get “no’s” at first, keep trying until you find a bank or credit union that will
work with you.
5. If possible, take the money saved and put into a savings account and – don’t touch
it. To show you have a small savings account which you deposit into on a regular
basis is proof of financial responsibility and may be a big help in finally getting
credit when it is needed.
6. You need to live within your means as well. No more credit cards, with one
exception you will see below, and no more department store cards. Chances are
you will not be able to get these cards for a while anyways but any offers for these
cards are invitations to trouble. Take the next couple of years to get used to living
within your means before you start looking at real credit again.
7. Finally you are going to want to get a secured credit card. Everyone needs a credit
card of some sort and a secured card is one where you determine the balance by
depositing money into the card. It is not a true credit card but as long as it has the
Visa or Mastercard logo on it, and you use it within the rules, it will help you with
credit repair after bankruptcy.
No one ever said establishing credit after bankruptcy discharge was going to be easy, but
it is certainly necessary and there may be many “bumps in the road” until you reach your
goal of a good credit score. At some point, you will be getting solicitations for credit
cards and other types of secured credit. Be cautious, this really is the money trap and you
certainly don’t want to fall into it before you are ready.
For information on credit after bankruptcy discharge visit: