Pardon me for a second while I write a nasty word… Bankruptcy. Now that the fowl language is out of the way, what can be done to recover. I don’t just mean our relationship from my bad language, I’m talking about your credit. Some consider it the end of your credit, but it doesn’t have to be. It was designed to provide a fresh start, or assist in repayment depending on your filing. First things first, is it discharged or dismissed yet? If it is not, stick with your repayment plan. If it is, here are a few steps to start the recovery process.
Check and Monitor Your Credit – Be sure to get all three bureau reports with scores. This will help you know what is on your report, where your scores started, and make good decisions to move forward and build good credit after a bankruptcy.
Pay Your Bills on Time – As always, the most important piece of your credit score is based on a positive payment history. If you have open accounts on places like Achieve Finance or anywhere else for that matter, be sure to pay them on time or even early to reflect a positive payment history. The more you can build the higher your scores will go.
Open a Credit Card – If all of your accounts were included in the bankruptcy this can be difficult. A secured credit card may be your best option to start out. You place a deposit with the issuing bank and that is your credit line. Use the card but keep it under 30% of the available balance. Make your payments on time and most banks will return your deposit in about 12 months and allow you to keep your account open.
Now it comes down to time. The more positive payment history you have the better your scores will get. Follow the simple steps above and you will see your credit scores go up.