Getting Credit After Bankruptcy

: Reese Baker & Associates

  Filed under: Credit

creditSome people assume that filing for bankruptcy in Houston will blacklist them from ever getting credit again. This is not true, as many people find themselves with the best credit they have had in years after a bankruptcy. There are even lenders who specifically lend to post-bankruptcy consumers. However, the credit process does take time and effort, here is how to put your best foot forward after a bankruptcy discharge:

Check your report — It is estimated that nearly half of all people carry inaccuracies and missing information on their credit reports. If your reports are not updated after your bankruptcy discharge, you could be delaying your ability to repair your credit and have a chance at new credit. Make sure your report is up to date and dispute any inaccuracies.

Clean up your act — While you will want to get a new credit card or line of credit after a bankruptcy , it is important to also take time to clean up your act with your current cards. Even though your high balances and delinquent account standing will be erased, you should still invest time establishing a positive credit history with your existing cards.

Take some time — Getting a good enough credit score to obtain a good line of credit takes time. Plan manageable purchases and pay the balances down to zero every few months. Let the balance sit a zero for a few months and repeat the purchase and payment cycle a few times. Keep your balances below 30% of your available spending limit while you work towards a better credit score.

Shop around — Once you have taken a few  months to establish a good credit history with your existing cards, shop around for different lines of new credit. You don’t have to take the first offer that comes along. Instead, look for the one with the  most favorable rates and conditions. When you do get accepted, don’t make a purchase right away. Take your time and make small purchases that are paid off every few months.