How long does it take to rebuild credit after filing Bankruptcy?

Filing bankruptcy may seem like a traumatic event that will effect your lifestyle for a very long time, but the reality is quite different. Once you have filed bankruptcy and the case is closed you essentially have a clean slate. You have no credit to speak of and need to rebuild it. If you have school loans those can help you rebuild your credit score since they usually are not be discharged under bankruptcy. The next step is to pull your credit and make sure everything is accurate and clean up what isn’t. Many time you will still have creditors reporting that you have not paid bills, even though they were discharged in the bankruptcy. Once you have done this it is time to look at getting secured credit with a credit card. You simply deposit at least $200, or as much as you can at a bank and they will give you a card. You don’t want to charge more than 30% or so of your credit limit, and you want to pay the balance off in full each month. Light, regular use of a credit card is what helps build your credit.

Lastly, you can purchase a car and begin to build credit this way. You will likely pay a tremendous amount of interest for the first couple of years, but you can then refinance or buy another car at a much more reasonable rate if you have been paying your bills on time. Essentially, when you file for bankruptcy it is important to work on rebuilding credit immediately. Once you have started this process you will be able to get normal rates within a few years.

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