Bankruptcy Discharge: How can I rebuild my credit after bankruptcy?
After receiving a Chapter 7 bankruptcy discharge, you can begin to rebuild your credit by purchase of automobile, home or small limit credit card. The key to rebuilding this credit is to stay current on your secured loans and pay off the balance of your credit card each month. Your credit score is also based on your credit to debt ratio. This means if you have high valued loans or maxed out credit cards then your credit score will be lower. Making timely payments will be reflected as positive report with credit reporting agencies.
When you apply for credit, the lender will look at your current income, credit score and the amount of debt you owe. Making better financial choices on a “need” basis instead of “want” basis after bankruptcy discharge will keep you living within your means.
