Rebuild credit score after bankruptcy

Do’s and Don’t after bankruptcy.


1) DO get copies of all three credit reports and make sure that all the accounts listed in your bankruptcy are being reported as discharged.  Your can get credit reports for free. It is a good idea to wait about 30 to 45 days after the discharge enters.
2) DO get a secured credit card but make sure the card issuer reports your payments, has a grace period, and set a limit that is comfortable for you.
3) DO set up plan for your undischarged debts, such as student loans and taxes, and pay them off as quickly as possible.  Call each creditor and make payment arrangements.
4) DO wait at least two years before applying for a mortgage to get the best interest rate.
5) DO try to use your new credit wisely and rebuild your credit score quickly.



1) DON’T take every available credit offer that is mailed to you. You’re better off seeking out a good secured credit card on your own.
2) DON’T reaffirm debts such as your car, mortgage or major appliances without the advice of your attorney.
3) DON’T let creditors shame you into paying a higher interest rate because of your bankruptcy. Once you’ve paid regularly on a secured card for a while, you are eligible for the going interest rates.  Don’t be afraid to leave that offer and go elsewhere.
4) DON’T take out a car loan for too many years because there’s too great a risk of becoming “upside-down” on your loan and owing more than the car is worth.
5) DON’T go to “bad credit no problem” lenders! They usually take advantage of you with high interest rates and bad terms.

You can be your own worst enemy after bankruptcy or you can be the best friend you’ve ever had. Follow these tips and you’ll soon be back on your financial feet and enjoying the fresh start you deserve.