Finding New Credit After Bankruptcy

Your debts have been discharged in bankruptcy, now what? While it may seem risky to attempt new credit after bankruptcy, the truth is that new credit is exactly what you need to begin reestablishing yourself as a responsible borrower. However, there is a right and a wrong way to pursue new credit.

Good Debts

There is good debt and bad debt. Bad debt is what lead you into the office of a bankruptcy lawyer the first time, good debt is what you need and debt that is responsibly managed. Here is what to look for:

• Check your credit report. You may find that your credit report does not reflect your recent discharge of debts. Have your creditors update your information with the credit reporting bureaus.
• Examine your financial situation. Find out what you can afford in the way of a debt payment so that you can keep your credit balances below your monthly payment threshold.
• Shop around to different credit card agencies. Even though your credit is less than spotless, you can still find better deals out there. Look for the card with the lowest interest rate and most favorable lending terms.
• Stick to unsecured debt accounts. It is best to find an unsecured line of credit to manage for six months to a year before you apply for a secured account.

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