I Filed Bankruptcy: How Can I Rebuild My Credit Score?

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Chapter 7 Bankruptcy Consumer Debt Credit

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Posted by: Russ B. Cope

Follow these steps to rebuild your FICO score after bankruptcy

Will I be able to get credit after filing for bankruptcy? How can I rebuild my credit after filing for bankruptcy?

These are two important questions commonly asked by those who have been forced to file for bankruptcy protection. A discharge in bankruptcy provides a debtor with a fresh start, unburdened by past debt. However, many debtors are concerned over whether they will be able to obtain credit after bankruptcy.

Rebuilding Your FICO Score – Steps to Take

Rebuilding your credit score, otherwise known as a FICO score, is important and as your credit score improves it will allow access to new credit. There are steps you can take to rebuild a credit score after a discharge in bankruptcy. Some of the steps you should take include:

1. reviewing your credit reports to be sure that all listings are accurate, your credit card accounts should reflect zero balances. Credit card debt is wiped out by filing bankruptcy. Make sure this is noted on your credit report.

2. writing letters to each of the credit reporting agencies explaining the circumstances that led to your decision to file bankruptcy;

3. stay away from payday loans;

4. find a friend or relative to co-sign on a loan and pay it on time;

5. open a credit card account, use it for a small purchase every month, and pay down the balance completely;

6. live within your means, do not unnecessarily increase your debt to income ratio in order to acquire luxury items;

Getting a Free Credit Report

You may review your credit reports, free of charge, three times a year by visiting www.annualcreditreport.com. If you find any inaccuracies, be sure to dispute them through the dispute resolution process provided by the credit reporting agencies. Be sure to make payments on all remaining lines of credit in a timely fashion, and all rent or mortgage payments should be made on time and by check.

Follow these basic steps and your FICO score will improve.

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