Tips for Rebuilding Credit After Filing for Bankruptcy

While filing for bankruptcy provides individuals and families all over the country the relief they need to get back on their feet, it does not come without a cost. Primarily, a bankruptcy will affect your overall credit. However, there are several things you can to do rebuild your credit. All you need is some discipline and a bit of self-education. If you have filed for bankruptcy and are now seeking to rebuild your credit, here are some of the questions you may have:

How long does it take to rebuild credit after filing for bankruptcy?

If you recently filed for Chapter 13 bankruptcy, you should be able to apply for non-secured credit cards within a year or two, once your credit score goes back up. A Chapter 7 bankruptcy will remain on your credit report for seven years, while a Chapter 13 bankruptcy will remain for 10 years. However, fortunately, you may start rebuilding your credit right away. Here’s how:

  • Traditional credit-builder loans are one of the best ways to help you rebuild your credit. In a traditional credit-builder loan, the lender will put the lend proceeds in a savings account until you have made all your payments. Once the loan term is over, you can have the cash, while simultaneously improving your credit, provided you made all payments on time.
  • If you have a close family member or friend with good credit, you may request they add you to their credit card account. By doing so, your credit may improve due to their solid credit card history of making payments on time.
  • If your credit lender uses certain credit scoring models, you may benefit from simply making your rent payments on time. Provided your credit lender uses rental-payment information when calculating credit scores, this can be a fantastic way to build credit. Simply ask your landlord to forward a record of your monthly payments to the three major consumer credit bureaus.
  • Lastly, it is extremely important to regularly go over your credit reports with a fine-tooth comb. This means ensuring all discharged accounts have a balance of $0.00. You must also confirm that the date of your bankruptcy filing is correct. Many Americans notice mistakes affecting their credit score every year, so you must ensure your information is 100% accurate at all times.

Contact our experienced New York firm

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.