Rebuilding Your Credit Score after Bankruptcy

A common bankruptcy myth is that filing bankruptcy will ruin your credit for the future. The truth is, many people find their overall credit starts improving following a bankruptcy. While bankruptcy will be recorded on your credit score for up to ten years, it is not the end of the road for obtaining credit. You can slowly rebuild your credit score and return to your financial life before bankruptcy, along with some discipline and patience.

Consider a co-signer

Co-sign with a family member or friend to be qualified for better cards or loans and re-establish your credit much more quickly. When choosing this option, you should sustain an absolute payment record going forward, not only for your sake but also to protect your co-signers credit report.

Maintain the payment of your non-bankruptcy accounts

Do not neglect your other accounts that are not integrated into your bankruptcy, such as student loans. Any active non-bankruptcy accounts will eventually continue to affect your credit score, so try to pay any existing loans on time.

Solicit new credit frugally

A portion of your credit score depends on the number of new credit applications you make. Do not try to apply for various credit card or loan applications at once, especially when you get rejected because you might be seen as desperate for credit. Instead, focus on paying off your existing debts and try applying again after six months or so.

Avoid job hopping

Recurrent job changes will not influence your credit score, although lenders look beyond your credit report while you are applying, particularly after a bankruptcy. Holding many jobs in one year might show that you have issues with discipline or responsibility. You will not be the kind of borrower on whom a lender can rely on. On the contrary, if you have a stable job and you have maintained it for a while, it might be seen as a sign of stability so that it can swing a decision in your direction.

Take the process slowly. Don't be in a rush, so you don't find yourself surrounded by mistakes that will just postpone your credit repair progress. It will indeed take a few years, but you can eventually win back an excellent credit score.

If you would like more information about bankruptcy, contact a Roseville bankruptcy attorney today.

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