4 Steps to Improve Your Credit Score After Bankruptcy

4 Steps to Improve Your Credit Score After Bankruptcy

Richard Fonfrias, J.D.
Chicago’s Financial Rescue & Bankruptcy Lawyer
Fonfrias Law Group, LLC


STEP #1:  Double check your credit reports.

If you filed Chapter 7 bankruptcy, you should find your bankruptcy accounts listed on your credit report with $zero balances.  If the creditor does not update the entry, send a letter to both the creditor and the credit reporting company.  If your account is still not corrected, contact your bankruptcy attorney.

 STEP #2:  Apply for new credit cards.

If you cannot get unsecured credit cards, then start with a secured credit card, which works like this:  You deposit money with the credit-card issuing company and that becomes your credit limit.  Then if you pay your credit card invoices on time for a year or so, most credit card companies will open an unsecured credit card account for you.

STEP #3:  Become an authorized user on someone else’s credit cards.

Ask a friend or family member to make you an authorized user on one of their credit cards.  That credit card’s account history will appear in your credit report — and your bankruptcy will have no effect on the other person’s credit.

STEP #4:  Start shopping for larger loans.

A few months after your bankruptcy, start shopping for a car loan.  Banks won’t likely approve your loan, but the finance manager at the dealership probably knows where to secure a loan for you.  And after two years of a good credit history, you are likely to be approved for a home mortgage.