Bankruptcy is not only financially stressful, but it also shakes the emotional stability and causes a lot of emotional stress. It can be a very challenging task to rebuild your credit. To do so, you need to improve your credit score. The first step would be knowing where you stand and how you can improve it.
If you are feeling devastated and defeated because you think that it is impossible to rebuild your credit after your recent bankruptcy, these 5 tips will help you to get back on track!
Use credit accounts
To rebuild your credit or to improve it you will be required to have some open credit accounts that can be reported to the credit bureaus. After bankruptcy using cash might seem tempting but this will not improve your credit score!
The most important point to keep in mind is to prove to the credit bureaus that you will be able to manage your accounts. However, in most cases either it is difficult to get approved at times or the interest rates are very high.
Use a secure credit card
Getting an approval for normal credit cards or taking up a loan can be extremely difficult in times like this. So how to improve your credit? The best option would be to apply for a secure credit card that are especially made for people with a poor credit.
To get a secure credit card, all you need to do is deposit a sum to open it. However, there are some secure credit cards that do not report to the credit bureaus. Your task would be to find a card that reports to the bureau every month!
Use your credit wisely
Just by having an active credit account will not serve the purpose of rebuilding your credit! You need to use your account wisely! Here are some tips:
- Always have an active credit account
- Use your secure card at least once in a month
- Pay your bills within the time limit and make sure to make the full payment
By following these tips, you will have an enough good credit score to apply for a normal credit card!
Pay your bills timely
Paying your bills on time is a very important tip that you need to practice. This is because any due bill might get reported to the credit bureau and it can ruin your score! Bills such as rent, electricity and credit bills must be paid in full and on time! You can set reminders or use post-it to never miss the deadline!
Don’t fall for scams
You need to know that rebuilding your credit score will take a lot of hard work and discipline. So if you come across posts such as “Rebuild your credit within 3 months and for free!” the best thing will be to ignore it!
It is always very challenging to get back on track, especially after you have gone through a recent bankruptcy. Don’t lose hope if it takes a long time. Determination and grit will help you to overcome this situation and having a good credit score would be a bonus, since it can save you from interests and open your path to variety of loans!