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How can you build a positive credit score after bankruptcy?

Filing for bankruptcy saves people from crippling debt, but it does come with a price. If your credit takes a hit after bankruptcy, you can work to rebuild it.

According to Experian, you should aim for a score higher than 670.

Choose automatic bill pay when possible

Everyone knows what it feels like to forget to pay a bill. Next thing you know, you have unaffordable late fees and your credit score takes a hit. If you have automatic bill pay, you do not worry about missing a payment. You keep a positive payment history with little work.

Use secured credit cards to rebuild credit

After filing for bankruptcy, many people have difficulty applying for an unsecured credit card. Until you have a higher credit score, consider a secured card. A secured card requires a deposit. The lender uses the deposit for your limit and if you do not pay your card, the lender uses the deposit to pay your balance. Making responsible payments on a secured card can help you transition to an unsecured card.

Become an authorized user

If you have a friend or family member add you to an account as an authorized user, the payment history shows up on your credit report. When becoming an authorized user, you need to work with the primary cardholder to make payments on your card.

Keep credit card balances low

When you manage to obtain a credit card, keep your balances low. A major influence on your credit score is your credit utilization. Only make purchases on a credit card that you know you can afford otherwise.

If you find any inaccuracies on your credit report, dispute them as soon as possible to clear your credit.


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