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Rebuilding Your Credit After Bankruptcy

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One of the main reasons for filing bankruptcy is to get a clean slate for rebuilding credit. A good credit score will save you money in interest, insurance rates, rental eligibility and can even affect your employment. You can begin rebuilding credit as soon as your bankruptcy case is closed.

If you have poor credit and do nothing, your credit score can remain where it is for years. You will pay "second chance" rates, be denied credit you should get, and it may even affect your employment status.

Reviewing your credit report yearly is recommended. Any inaccuracies should be reported to the credit bureaus; they could be affecting your score in a negative way.

Credit Cards

One of the easiest and fastest ways to rebuild credit is by getting a small credit card account. Even a secured credit card can help rebuild credit. Once you have a small credit line it will be important to use the credit. Make sure you pay off the balance each month to avoid the expensive high-interest charges.

Your credit score grows fastest when you have open credit card accounts with low or no balances.

Installment Accounts

Installment accounts are accounts with specific monthly payments usually secured by the property. After bankruptcy, you may still have auto financing payments, student loans, or reaffirmed home loans. Existing installment accounts are important to grow your credit score; however, payments must be made on time.


Reaffirmation agreements may be discussed with your Chapter 7 bankruptcy attorney in Springfield, Missouri. Reaffirmation agreements are contracts you may sign while in Chapter 7 bankruptcy. They are often used for vehicle and home loans. Creditors will report the positive payment history if the agreement is filed and approved by the bankruptcy court. Remember scheduled payments must be made on time.

Money Management

Pay bills on time. Budget or set goals to manage your money. Income must exceed expenses by at least $1. If it doesn't, you will incur debt and you cannot grow your credit score. Each time you are about to spend ask yourself if you can afford it and if you need it. Write down every dollar you spend and what you spend it on. Create a budget, goals, and spending limits. Adjust your spending to the money you have.