How To Build Credit After Bankruptcy

One of the things most people want to know when considering bankruptcy is how soon after filing bankruptcy can they obtain credit. The answer to this will vary from case to case but there is a relatively simple formula to follow. After your case is filed, you can apply immediately for a secured credit card. A secured credit card is where you put a certain dollar amount on account at a bank in exchange for charging privileges up to that amount. The advantage of secured credit card is that it will start to report positively to the credit bureaus. It also gets you to focus on exactly how much you can spend because your credit limit is going to be relatively small at the outset.
Another good idea is open up a new trade line. This can be either an auto, furniture, jewelry, electronics or any other line of credit on a relatively small dollar amount. This is just another way of having a lender report positively to the credit bureaus after your case is filed. By doing these two tactics, you will see your credit score increase over time.

The video accompanying this blog post talks about this greater detail.

  • AS SEEN ON:Fox News Chicago
  • Chicago Sun-Times
  • Chicago Tribune
  • Daily Herald
Fox News Chicago Chicago Sun-Times
Chicago Tribune Daily Herald