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.