Filing Chapter 7 bankruptcy allows you to discharge many of your debts. However, many people struggle with how to rebuild their credit following a bankruptcy case.
While you may have to wait to apply for credit cards again, you can begin to rebuild your credit and may find that your credit score returns to normal quickly. According to Experian, there are various ways to build your credit.
Consider becoming an authorized user
Authorized users allow you to benefit from someone else’s existing account. A person can add you as an authorized user and the account’s positive payment history translates to your credit report and credit scores.
Stay on top of your budget
It can be easy to spend more than you have with credit cards. You never want to put yourself in a situation where you cannot afford your bills every month. Keep track of all your monthly payments and only spend what you can afford on the credit card. You should be able to pay your credit card purchases off unless you need one for an emergency.
Apply for a secured credit card
Most people can apply for a secured credit card before an unsecured card after filing bankruptcy. A secured credit card allows you to put a downpayment on the card that serves as your limit. If you do not make payments or default on the card, the bank keeps the money you put down. When used responsibly and as your credit score increases, you may eventually be able to turn it into an unsecured card.
Remember what you learned from filing bankruptcy, keep your former struggles in mind to stay on top of your credit.