What to do after a bankruptcy discharge

When matters get tough and are out of your control bankruptcy is a great tool to protect you. Whether you are filing chapter 7 or chapter 13 there is life afterwards. Quite contrary to popular belief you can recover fairly quickly after filing bankruptcy. The problem I see the most is that most people after filing bankruptcy do not want any type of credit what so ever. This is the worst thing you can do after filing bankruptcy. In this article I wanted to discuss the importance of re-establishing credit after a bankruptcy discharge.

The first thing you need to do after you file bankruptcy is re-establish your credit. You will find that most credit card companies will not extend credit to you that is not secured. So the first step is to get a secured credit card. Secured credit cards are the quickest way to re-establish credit after a bankruptcy. This type of credit card allows you to re-establish credit quickly. There are a couple of credit cards that I would recommend. The first credit card is applied bank. The second credit card is Orchard bank. These are two good secured credit card companies that will get you in the right direction. I recommend getting one of each to help you re-establish.

Typically after 12 months of good payment history on secured credit cards you should see improvement with your credit scores. You will also see all kinds of credit card offers in the mail. Some credit card companies that offer secured credit cards will offer you a un-secured credit line with good payment history. Typically after 2 years of good credit history on a couple of secured credit cards you should be ready to apply for small credit limits.

Maybe getting credit after a bankruptcy sounds like a bad idea, but if you want to get a loan anytime soon you will need to re-establish your credit. Bankruptcy scares most creditors and they will require you to re-establish credit after any type of bankruptcy.

Once quick tip, make sure you dont charge more on your credit cards than you can pay off that month. Credit cards are for emergencies and should be used wisely.

So if you have not re-established after your bankruptcy, I would get your secured credit cards today


One Response to “What to do after a bankruptcy discharge”

  1. john says:

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Disclaimer: This information has been compiled and provided by CreditScoreQuick.com as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.