Filing for bankruptcy will undeniably have a great impact on your credit but sometimes it becomes the only option. It is important to evaluate the budgeting and financial mistakes that helped lead you to this direction. While we realize you didn’t get there on purpose you should self examine your spending habits and start working on ways to rebuild your credit. Yes you heard us right; you can still work on rebuilding your credit even AFTER filing a bankruptcy. But, it will take time and perseverance on your part.



Below are some tips to help you reestablish your credit after filing for bankruptcy.

1. Learn to live within your financial means. Spend your money wisely and do not buy luxury items that are not a necessity for living! This is an important lesson to learn and it will be hard to talk yourself out of some of those luxury purchases but you will thank yourself later.


2. Apply for a secured credit card and be sure to repay on time! This will reflect positively on your credit report and help you to start a new and on time paying credit history. Try not to jump right back in and get a card with a high deposit amount, start out small and progress forward.


3. Open a new checking and/or savings account. Lenders will take this into consideration when determining if you are responsible enough to lend money too.


4. This one can be trick, but see if you have a friend or relative that will cosign on a credit card or small loan with you and then be sure to make all the payments on time. This will help to reestablish good credit and an on time payment history.


5. When applying for new credit, try to start with a gas card or store credit card – these are items you would normally pay for in cash but now you can pay the bill monthly to reestablish credit. This may be a wise choice as to not give yourself extra credit on items you may not need right now!


6. Payday loans should always be a last resort and avoided at all costs if at all possible! The interest rates are extremely high and they can easily become a bad credit trap after all your hard work.


7. Lastly, pay all your credit card and utility bills on time!



These few small tips will help you to reestablish your credit history after surviving your bankruptcy. Don’t give up hope, it is possible but it will take time, effort and a lot of hard work and determination.

About the Author

Sam Argon is a retired banker who loves to contribute to financial message boards in his spare time. In addition, Sam has written information about www.filingforbankruptcyonline.com - a website offering information and resources for people who are thinking about declaring bankruptcy.