Bankruptcy filings are more common than you might think, with U.S. courts recording nearly 800,000 cases in the financial year ending in June 2017 alone. Checking your credit score after filing for bankruptcy can be disheartening—but it isn’t cause for despair. Here’s how you can rebuild your credit score in three steps. 

3 Tips to Rebuild Your Credit After Bankruptcy

1. Get a Credit Card

This might seem counterintuitive, especially if credit card debt caused your financial troubles in the first place. However, this step is essential to rebuilding credit. Get a secure credit card that requires you to make a deposit equaling the credit line you expect. Look for a low-interest rate, and always read the fine print on fees—some might promise a low rate up front and raise it drastically after one year. Make your payments regularly, on time, and in full.

2. Obtain Gas or Retail Cards

Directly after you file for bankruptcy, you may have trouble getting a credit card. Don’t fret—lenders will want you back, but it may take a few months before they offer credit. In the meantime, get gas or retail cards, which usually have less stringent standards and can still boost your credit score.

3. Open Brand-New Accounts

Start new checking and saving accounts to show you are financially stable. This will allow you to start over with a clean slate. You should also consider setting up automated billing payments. This ensures that essentials, like utilities, are paid on-time—another factor that can bring your credit rating back up.

If you need a bankruptcy attorney, look to Frances H. Hollinger Attorney at Law. Located in Foley, AL, this law firm focuses on debt relief and bankruptcy advice. Their team is accustomed to supporting clients in stressful financial times, and they can guide you through the maze of paperwork you need to get back on your feet. Whether you need assistance filing for Chapter 13 bankruptcy or want to discuss debt relief plans—they can help. To discuss your needs directly, request an appointment using the online form or call (251) 943-9030.