You were bankrupt for 12 months, and now your bankruptcy has been discharged, you are now officially debt free, starting over, a fresh start. What next do you need to do.
One thing to do is to take a look, if you have not already done this or know, what took you to the point of needing to go bankrupt?
It may have been one financial disaster, such as losing one’s job, illness, etc.
It also could have been a cumulative effect, like constantly using credit, borrowing, only paying the minimum payments, basically over-extending yourself.
Either way, knowing what brought you to being bankrupt, will aid in knowing how to avoid financial mistakes again.
Bankruptcy as well as all credit accounts, are reported and stay on your credit file for six (6) years. Many people think that means for 6 years they cannot get credit. That is not entirely true.
So what tips are there to “rebuild” your credit after bankruptcy?
Tips to Improve Your Credit
The first tip, isn’t really a tip, but a fact….time, time will heal your credit history. I know 6 years is a long time, and you won’t have to wait that long, but the more time between going bankrupt, and seeking new credit does help.
Onto the tips…
- Pay your usual monthly bills on time each month. While this may seem like common sense, there are many who pay their bills a few days late. They may blame when they get paid not synch up with due dates; then change the due dates. You can change the dates your bills are due.
- Save money. Have a savings account and show a regular pattern of savings, even if it is just a small amount each month.
- Register to vote, get on the Electoral Roll. Lenders use this to verify who you are and your address, so being on this helps.
- Use Experian Boost. This service of one of the credit bureaus allows you to get credit for paying your bills on time, and can aid in improving your credit.
- Get on the Rental Exchange. Your landlord needs to be a part of this, but there is no cost to either of you. You get credit for paying your rent, just like a homeowner gets credit for paying a mortgage.
- Review your credit file regularly for any errors and omissions.
- Credit builder credit cards. These credit cards are aimed at high risk borrowers, and come with a high APR or interest rate, but used wisely, can improve your credit.
- Guarantor loans. Another way to get credit and start over, but you need a friend or family member with good credit to guarantee the loan.
While not an exhaustive list, these tips will get you started back on the credit path, and improve your credit file.