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How to improve your credit after bankruptcy

Now that you have completed the bankruptcy process and gotten your finances in order, you may be wondering what you can do to improve your credit profile. You may already be aware of how long bankruptcy can affect your credit rating. However, there are things you can do to improve your credit while you wait for that to fall off your profile. 

Before you start working to improve your credit, it is crucial for you to examine your financial habits. If you are still experiencing problems with your bills or have some poor money management skills, you should work on them first. If you do not, you could find yourself in a financial bind like you were before you filed for bankruptcy. 

Check your credit report 

One of the first things you should do is check your credit reports from all three major reporting bureaus. Check for inaccurate information and dispute it. Monitor your credit reports every few months to ensure mistakes and inaccurate information are not penalizing your score. 

Do not avoid credit cards 

One of the most important components of your credit comes from your ability to pay revolving loans, credit cards and other financial obligations on time. You may think your score is so low now that no lender will offer you any credit. There are credit cards for people who have poor, limited and no credit. However, most of those credit cards will require you to pay a deposit to secure the amount of credit they extend to you. 

Be careful when shopping for bankruptcy-friendly credit cards. Many lenders tend to offer subprime rates and terms that can make it challenging for you to afford them. It may be more beneficial for you to start with secured cards to build a positive payment history. 

Pay your bills on time every month. If possible, pay more than the minimum on your credit card debts to avoid owing more because of interest charges. It is important for you to show that you are stable and capable of being responsible with your money and debts. Stay patient. It takes time to improve your credit after a bankruptcy. As long as you are willing to be patient and exercise financial responsibility, your credit will improve.

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Joshua Z. Goldblum, Attorney at Law
Stonewood Office Campus
826 Bustleton Pike Suite 101B
Feasterville, PA 19053

Phone: 215-322-2745
Fax: 215-953-9973
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