How To Rebuild Your Credit After Bankruptcy 
Even though a bankruptcy will linger on your report for a while, there are useful tips to help you improve your credit and become eligible for credit, even with the bankruptcy still on your file.
Disputing A Bankruptcy
This is no easy task, but it is possible. It is one of the best ways to help repair your credit. Going about this process on your own will be very challenging and it is wise to involve a credit repair professional.
They have the knowledge and experience and could get the account permanently deleted from your report before the seven years. In the process, they can get other negative items removed from your report as well.
Do Not Repeat Past Mistakes
Some people get into financial troubles due to situations that are out of their control such as medical emergencies or a job loss. Other people get into trouble because of careless spending.
Whatever the reason for filing for bankruptcy, try your best to make sure it never happens again. If you have a problem with overspending, come up with a monthly budget and stick to it. If an emergency is the reason for your financial hardship, consider setting aside a rainy day fund. Even if money is tight, find ways to help you spend less so you can save.
Applying For A Credit Card After Bankruptcy
A credit card is a quick and effective way to improve your credit. You may be hesitant because more debt is not exactly what you are looking for but a positive payment history affects your score more than any other component.
Instead of charging all your expenses to your card, pick a single bill to pay with your credit card every month and then repay the balance immediately. A long history of on-time payments will start to increase your score.
How do you get a credit card with a bankruptcy? You have the option of both secured and unsecured credit cards (even immediately after a bankruptcy). A secured credit card requires you to place a refundable deposit equal to your credit limit. The deposit is security and you will be paying for the card balances out of your own pocket.
Ensure that the credit card issuer reports your monthly activities to the three credit bureaus. Do not make too many credit card applications as this could hurt your score even more.
Buying A Car After A Bankruptcy
Before you start thinking about a car, be responsible with your credit card for at least six months. This shows that you can repay your debts and improves your score.
Also, set aside some money to use as down payment, even if you are eligible for the full amount. Remember you will, most likely, have to pay a higher interest rate. Consider a used car rather than a brand new one.
Buying A House After A Bankruptcy
This one will have to wait for a while depending on the type of bankruptcy you filed for and the loan you want.
You will have to get permission from the court and have a 12-month history of on-time payment. You might also have to pay a higher down payment and interest.
Because of this, spend the seasoning period making responsible financial decisions and rebuilding your credit.
