Filing for bankruptcy provides struggling borrowers with the opportunity to reclaim their lives from debt and begin to repair the damage done to their credit history. While you might assume that having a bankruptcy on your credit report means no lender will issue you a credit card or auto loan again, practicing some financial discipline can bring your score up faster than you might think. Below are a few techniques for improving your credit rating after bankruptcy.

5 Tips for Rebuilding Your Credit

1. Check Your Credit Report

Everyone is entitled to a free copy of their credit report once per year, so order yours a few months after filing for bankruptcy. Carefully examine the report for errors, checking to ensure that all of your debts are marked as discharged, and report any mistakes to both your creditor and the reporting bureau.

2. Start Saving Money

After filing for bankruptcy, you can use the funds formerly directed toward your debts to build up a savings account. Having enough to cover several months of living expenses will insulate you from financial emergencies, and prove your discipline to future lenders.

3. Apply for Credit

Several months after your bankruptcy, you may be able to qualify for new credit, especially gas cards or store charge accounts. Secured credit cards are also a popular tool to rebuild a credit score, although you should read the details of any offer carefully.

4. Avoid Carrying Balances

The purpose of opening new accounts is to demonstrate your creditworthiness, so never charge more than you can afford to pay in a single month. Paying off the bill in full every month will also keep your credit utilization low, which will help bring up your credit rating.

5. Pay Bills on Time

The credit reporting bureaus place particular emphasis on payment history, so be sure to pay your bills promptly. Automatic bill payment can help those who have trouble keeping track of due dates avoid missed payments and substantial late fees.

If you’re struggling with debts you can’t repay, the legal team at Greene Law, PC is ready to identify your options and put you back on the path toward solvency. They’ve been serving borrowers throughout Farmington, CT, for over 25 years, offering compassionate service and individualized attention to every client. Visit their website for more on the benefits of filing for bankruptcy or call (860) 676-1336 to schedule a consultation.