Bankruptcy can provide relief from significant debt. But this legal process still has consequences, and your credit score may fall a little bit after you file. To boost your credit after you file bankruptcy, try the following strategies:
1. Get a secured credit card – A secured credit card is usually easier to get than a normal credit card. With these cards, you put down a deposit and borrow against this amount when you use the card.
2. Keep up with your payments – One of the best things you can do for your credit (and your finances) after you file bankruptcy is to stay on top of your regular payments. Create a basic budget to determine your income and expenses, and make sure you pay all your bills on time every month.
3. Use credit wisely – Using credit can be a helpful way to enhance your credit score after bankruptcy, as long as you do so carefully. You may want to try getting a small personal loan or purchasing a new car to help boost your credit score.
4. Get a cosigner – If you have trouble getting a loan, you may want to try getting a cosigner. Not only can this help you get a loan, but it may also help you get a better interest rate on the funds you borrow.
All of these strategies can help you rebuild your credit after bankruptcy, but the main thing to remember is that it takes time. Be patient and continue with your efforts to maintain smart personal financial habits.