To rebuild your credit after bankruptcy, the first thing—and the simplest thing, but for many people often the hardest—is to pay any obligations and debts after the bankruptcy on time every month. That’s the part that normally got people in trouble before, so they have to turn that around.
Car payments, mortgage payments, or anything you’re continuing to pay after the bankruptcy, as well as any new obligations you take on in the future, should always be paid on time. That’s the number one thing that improves credit.
A lot of people think there’s some kind of secret trick, but if you file for bankruptcy and then pay your bills on time every month, you will eventually have really good credit.
In the short term after bankruptcy, some people recommend things like getting a small personal loan from a credit union or a bank to make regular payments, just to show an on-time payment history after the bankruptcy. Others recommend getting a secured credit card or a credit card with a small limit, charging small amounts each month, and paying it off on time to show consistent payment history.
Those ideas aren’t bad additions, but the main thing is to not get yourself in trouble again.
