5 Ways To Rebuild Your Credit Score After Being Bankrupt

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5 Methods to Rebuild Your Credit Score Following Becoming Bankrupt

Bankruptcy may be a really painful time for anybody. Nevertheless, bankruptcy surely does not mean it is the finish with the globe for you. Whilst bankruptcy can have a main impact on your credit score, it will not mean that you will by no means have the ability to avail of credit once more. Whilst the recovery procedure might be fairly lengthy and stressful, and occasionally youll only be left with absolutely nothing together with your shirt on your back, or your pants and shoes, there’s usually light in the finish with the dark tunnel. Here are 5 innovative methods for rebuilding your credit following becoming bankrupt.

Get A Secured Credit Card

As soon as your bankruptcy has already been discharged, slowly develop back your credit, by obtaining a secured or prepaid credit card. A prepaid credit card can act like a debit card, where you put in money, and you draw against it, and you reload the card once more. Usually make it a habit to not use much more than 40 percent of your credit limit on any revolving loan.

Pay All of your Bills On Time

To develop up your credit score following bankruptcy, keep in mind to pay all of your bills on time. From credit card, telephone and utility bills, to apartment rentals as well as parking ticket fines, usually make sure that you are not weighed down by an excessive amount of debt. Some creditors have been recognized to appear at their customer’s bill payment records, to ensure that they are able to establish your willingness to pay.

Get Installment Loans

Subsequent, get an installment loan, like a automobile or appliance loan. This may be a good begin towards rebuilding your credit score. As soon as you have gotten approval, pay off the loan within the quickest time feasible.

Evaluate Your Credit Report For Errors

Your credit report should nonetheless have to be totally evaluated, even when you have already been declared to be bankrupt. Take a look at any errors or inconsistencies on your credit report, simply because any negative item is only allowed to be reported for 7 years. Ought to you spot any inconsistency or discrepancy inside your report, this ought to be removed or erased instantly.

Maintain Off Any Overdraft Fees

To steer clear of overdraft fees, usually make it a habit to balance your checkbook against your monthly statements, and usually maintain records with the items you buy, or the services youve availed of.

It would also assist in the event you say no to getting a co-signer to your credit. By getting co-signers show-up on your credit report, it might really weaken your case with future creditors. As soon as a creditor sees that youve had a co-signer, theyll see you as a high-risk client, and will also ask which you get a co-signer for their loan too. These times, a persons monetary future significantly revolves about those 3 small numbers that make up a credit report. A great score indicates which you are financially stable, and is in great standing for applying a loan, or any type of financing. A low or poor credit score will only serve to add much more headaches to your monetary standing.

Comments: 20

  1. Enda April 4, 2013 at 3:49 pm Reply

    I Make $160 less in income than I need to pay bills.
    All bills are bieng paid in full except cc debt/lineofcreditdebt.

    CC/line are minimum paid right now.
    Debt is about $28k or so.

    My yearly income is $26k approximtely.

    New income from inheritance will be 6% of inheritance at $2157-$2355 per month for the next 21 years max.

    Also I have $19k in IRA’s (part traditional part roth).
    Part could be pulled rule 72T to save on penalty.

    If u knew the income was going to be like above.. would u rule out cashing the ira (w or wo penalty).

    Doing so always me to d afresh start..
    I can immediately rebuild everything & spend the years on a postiive upswing instead of paying on the debt for next 2-5 years.

    Question: knowing the above, why not cash the IRA, one year after the pullout I would be able to contribute the max allowed to iras till I have to stop.
    started last month…I already got payment #1
    Though i was told it would be $2355 and it was $2157 instead (thats other issues).

    I do figure on not touching the first month or two of trust income.
    Not behind, but will be real quick.
    Even with the extra income…there will be little room to pay off the debt in less than 2-5 years.

    Unless I do nothing and have no life and no enjoyment of life at 49.

    Plus my wifes health is suffering, and the cashflow increase would help avoid problems later on.
    Um… begining last month I get $2157-$2355 per month for the next 21 years…
    I have no intention to renting…around here it actually can cost more to rent than to buy a home. In fact I had hoped to actually buy a new house in 5 years or less…. and actually use the new cash flow to fix up old place for sale.

  2. Carina April 10, 2013 at 8:40 am Reply

    Long story.
    Like a lot of people I graduated college very naive but positive. I was laid off from a decent paying job and after that did temp work before deciding I wanted to work in the education field. Sadly, the charter school I worked for let all non full time employees go so now I am back to being on unemployment.
    Each time I was laid off (the temp jobs didn’t last more than 6 months since those were temp only) I had to wait 4 weeks before I saw one penny of unemployment. I had little money in the bank so I did a very stupid thing, I used my credit card for rent, food, and sometimes gas (and one time a vet bill). I tried to go to a debt consultation place my credit card company referred me to and the girl told me that my problem was not budgeting it was lack of income. I told her I would work 70 hours if I could but it was hard to find work. She told me that a chapter 7 would be my best option to give me a “fresh start” and she told me I could look at repairing my credit after that and when I was working a steady job.
    Any way, I am very depressed. The Unemployment Office told me that if I can get accepted into a program for my teaching certificate for a year and a half they will arrange for me to have my tuition waived and grant me an extension. It would be a year and a half of scrimping (I live with my boyfriend so he told me he can handle the rent while I am in school, the logic to him is that when I am teaching, I will have a better income and perhaps he can go to vo-tech while I work). I also plan to volunteer as a tutor if I do this, I always volunteered while on unemployment, it just felt wrong not to give back.
    Sorry this was long, so I don’t know what to do, I have tried working with my credit card companies but they don’t want to budge on my min and one has gone to collections. I feel so depressed because my father always taught me to be good with my money but I wasn’t buying designer clothes, or anything luxury like. I was trying to keep a roof over my head and food on the table (which was peanut butter and pasta mostly I once even went 10 days without eating). I also worked hard so I could have a decent career and maybe own a home, and a decent car (all though taking the bus is good for the planet! 🙂 ) not so I could file for bankruptcy and have to have my boyfriend make sure I am not homeless.
    What else are my options? Has any one else had to file? Were you able to get your credit back? I have not told anyone in family and I wish I could talk to my boyfriend’s dad because he is an attorney but he made a remark the other day about how people ruin their credit about being irresponsible and filing. I also can’t tell my older sister, she was smart and became an engineer so she has always had a good paying job (which she did work her ass off to get) and even though she cares about me, I know she will be upset, and she is getting married soon and I am her maid of honor so I don’t her to think I can’t afford to be one.
    What should I do? Please try to be too harsh, I am actually crying as I write this.

  3. Jillian April 11, 2013 at 1:21 am Reply

    I have debts of around £50,000 which are going to take me about 6 years to clear, and I’ve just found out that I have a poor credit rating.

    Should I just declare myself bankrupt as I hear that takes about 5 years to come off your record.

    Or take out an IVA?

    There is no way I can continue to carry on the way that I am. I bring home £28k per year and nearly all of that goes back out on paying off debts.

    Can anyone advise on the options that face me?

    What actually happens when you declare bankruptcy? Does everything get repossessed?


  4. Luis June 25, 2013 at 9:22 pm Reply

    I got a prepaid credit card from my uncle for christmas, i’ve used it up and now i want to get rid of it so that i can use the gift card i bought today. Help?
    i already entered the gift card. i don’t need help with that. i need help deleting the prepaid credit card. (as in a visa one you might get as a gift for an event)

  5. Willy July 29, 2013 at 1:14 am Reply

    My hotel was paid with a prepaid credit card but they’re still holding $150. Is there a limit to how long they can keep that deposit?

  6. Odell November 24, 2013 at 6:09 am Reply

    I want a WalMart prepaid credit card, and I am just wondering how you get one, once you’re at WalMart. I know this may seem like a dumb question, but I don’ know where to go or what to give when I’m there. Also, how long does it take to get the card?

  7. Nicolasa November 27, 2013 at 4:16 am Reply

    For the sake of recognizability, let’s say you bought a $5000 ring on QVC with payments of $50 for 100 weeks, what would happen if you put it on a prepaid credit card that only has like $75 on it? Does the stuff become free after a week?
    Yes but what if you gave them a PO box and a fake name since prepaid cards have no preset name?

  8. Ray November 27, 2013 at 4:59 am Reply

    I’m looking to possibly buy a prepaid credit card here in Canada. Can anyone suggest any possible store that might sell some?

  9. Valentin November 29, 2013 at 12:43 am Reply

    What is your experience with purchasing tickets with a prepaid credit card and what companies take It. Delta? American? Other online websites like Travelicity? Cheaptickets?

  10. Shelton December 23, 2013 at 3:18 am Reply

    I’m planning on booking a flight online but I don’t have my own credit card, and would prefer to not use my parents unless there is no other option. I’ve been considering a prepaid credit card, but I’m nervous that the transaction would go wrong somewhere and I would only find out once I’m in the airport!

  11. Donita January 4, 2014 at 6:37 am Reply

    Can I buy a prepaid credit card from someplace like Walgreens, put money on it there at the check-out counter, and then use it to be swiped at the redbox machine for renting movies? Then again I don’t know if overdue fees could be applied to a prepaid credit card. Just wondering if I could do something like this. Thanks.

  12. Floretta January 6, 2014 at 3:45 am Reply

    I have a prepaid credit card that I use for Amazon purchases and what I would like to buy exceeds remaining balance on the card. Will the purchase be denied or will the charge go through but then they will hunt me down?

  13. Mario February 21, 2014 at 9:13 pm Reply

    I am looking to buy a home next year but I haven’t been paying my credit cards since 2009. I know I’m credit won’t be good either way but I wanna know which option will help my chances more of getting a loan. Any info will help! Thank you!!!

  14. Sol February 21, 2014 at 10:20 pm Reply

    i want to buy concert tickets online..but i heard that you cant purchase them with a pre paid credit card…anybody know??

  15. Tai February 22, 2014 at 7:07 am Reply

    I think about getting a prepaid visa card, but somebody tells me about $100 visa card. What is the $100 Visa Card? Is prepaid visa card different from credit card?

  16. Jimmie February 22, 2014 at 7:08 am Reply

    Is there any prepaid credit cards that is RELOADABLE, and WILL INCREASE/BUIL your credit at the same time?

    I’ve tried prepaid VISA and a few others,but they were not reloadable.
    If I get a credit card from Orchard,Imagine Visa or so,
    do they require information from my job?
    I work,but since I am a exotic dancer,I only make $ money.

    Will I be able to apply for one of those credit cards still,as long as I deposit money on it and deposit money on a checking card as well?

  17. Casey March 11, 2014 at 9:43 am Reply

    Ok well im trying to get one for my brother, so i want to know if i go to Wal-Mart and give them $300 will they put it on the Pre-Paid Credit Card?

    How much can i put on the card?

  18. Sharolyn June 3, 2014 at 10:18 am Reply

    Can you ave a prepaid credit card if you are in bankruptcy?

  19. Collette June 13, 2014 at 6:58 pm Reply

    I was thinking of getting a prepaid credit card to help build my credit because I have none. I do not want a normal credit card because I don’t want to overdraw and get myself in to trouble with owing money. Are there any company’s that have few to no charges cause from what I have researched many places charge for with drawing money depositing money activating the account and so on.

  20. Lucrecia June 19, 2014 at 9:41 am Reply


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