Post-Bankruptcy Credit

: Chris Lee Law Firm

  Filed under: Credit Tips

credit after bankruptcyCredit concerns are one of the most common worries that people have when they enter the bankruptcy process. Not realizing that the bulk of credit damage is already done when they miss a payment or default on their account, many people assume bankruptcy itself is what complicates their future of credit. While filing for bankruptcy can pose additional challenges on your future credit, it definitely does not prevent you from obtaining credit again. In fact, bankruptcy can give you a better shot at credit than not resolving your debts at all.

Moving On

Getting credit after bankruptcy is not as difficult as you might expect. In fact, there are many creditors who target post-bankruptcy consumers and offer lines of credit right after a discharge. However, these lines of credit may not be the best accounts and can come with some steep terms if not carefully considered. In order to secure the best line of credit possible and rebuild a healthy line of credit after bankruptcy, follow these steps:

  • Review your credit report and ensure all the account information is up to date
  • Shop around for the best credit offer
  • Pass on a high limit card for one that has a lower limit, but also a better interest rate
  • Maintain a small balance on one to two lines of credit
  • Keep your balances less than 30 percent of the overall spending limit
  • Make consistent and timely payments
  • Wait at least 6 to 12 months before taking on a higher limit or secured line of credit



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