Life After Bankruptcy – Simple Steps to Re-establish Credit

So, you have filed for bankruptcy and gone through the process.  Now what?  How do you move on?

First, let go of any guilt and shame.  It is time to start over.  Bad things happen to good people all the time and you are not alone.

A beginning step in starting over is re-establishing your credit.  Filing for bankruptcy does not mean that your credit will be ruined forever.  Your credit is damaged, not destroyed.  There are several ways you can re-establish credit.  As long as you work at it, you can get your credit restored and put your financial past behind you for good.

Here are a few ways to re-establish credit after bankruptcy:

• Get a secured credit card. With a secured credit card, you give your bank money to hold and in exchange, they give you a credit card with an equal limit.  However, make sure you check for upfront fees — some organizations will charge up to $200 just to open the card.  Also, make sure the bank reports the credit card to all three major credit bureaus: Experian, Equifax, and TransUnion.
• Try an unsecured credit card such as a retail or gas card. You may receive credit card offers in the mail where you don’t have to give money upfront.  As long as the fees are low and the card reports to the three credit bureaus, you can open a card, make a small purchase, and carry the balance for a few months, making minimum payments.  This will show that you can now handle credit responsibly.
• Become an authorized user. If you become an authorized user on an account of a friend or relative who has good credit then that reflects well on your score.  You do not have to use the account or receive a card but can benefit from their positive activity.  But beware, if they are delinquent that will reflect on you as well.

These are steps that anyone can do.  For more aggressive action, you can employ credit restoration professionals that can take additional steps.  If you would like other suggestions for improving your credit following a bankruptcy proceeding, a full service debt relief law firm can offer sound advice.

A Pennsylvania law firm such as Harold Shepley & Associates can provide you with all of the information regarding effective solutions for re-establishing credit after bankruptcy.  Contact them today to find out more information on your options.

By Harold Shepley | Published December 22, 2011 | Posted in Bankruptcy, Chapter 13, Chapter 7, Credit | Tagged bankruptcy, credit, Harrisburg, Pennsylvania, Pittsburg | Leave a comment