While it’s true that bankruptcy significantly impacts your credit score, this doesn’t mean your record is ruined forever. With discipline, resolve, and the guidance of a knowledgeable bankruptcy lawyer, you can slowly rebuild your credit. Here are some ways you can begin to restore your credit after a debt discharge. 

How to Repair Your Credit After Filing for Bankruptcy

1. Get a Secured Credit Card

You may have already been informed by a bankruptcy lawyer that it will be challenging to secure new credit once you file for bankruptcy. Thankfully, you can use secured credit cards to repair your credit post-bankruptcy if traditional cards reject your application. Secured credit cards ask for upfront deposits, which usually become your credit limit. This way, the lender is protected if you fail to settle payments. Keep in mind that your secured credit card application may still be rejected, and if it’s approved, you will likely pay annual fees and higher interest rates.

2. Be an Authorized User on an Account

For this option to work, a friend or relative should add you to their credit card account as an authorized user. This alternative is better than asking them to co-sign your new credit card or loan since your credit history will not damage theirs. Be sure to check if the credit card reports payments to the credit bureaus—you need this to improve your credit score.

3. Acquire a Credit-Builder Loan

Credit unions issue these types of loans, and they give your credit proceeds using a savings account. You can collect your cash, including interests earned, after settling your final payment. Since the unions send payment history reports to the credit bureaus, their loans can help you rebuild your score if you pay your obligations punctually. But before applying for a loan, make sure you can afford the fees, interest rate, and monthly installments. Better yet, consult a bankruptcy lawyer if this option is advisable for your situation.

It may be overwhelming to get your financial life back on track, but Mark O. Grater Attorney at Law in Groton, CT, will help you get the results you want. Backed by more than 30 years of experience, this compassionate bankruptcy lawyer provides his clients with solid, personalized legal solutions. You can also rely on him if you need a criminal law attorney, personal injury lawyer, or a highly qualified workers compensation legal representative. Call (860) 449-8059 to schedule a consultation or visit his website to browse his bankruptcy services.