Tips to Rebuilding Credit after Filing Bankruptcy

15 Tips to establish good credit & raise your credit score

Most people think that they can never establish their credit after filing bankruptcy but this is simply not true. After your bankruptcy has been processed and your unsecured debt removed, you can begin rebuilding your credit simply by staying current on rent payments. Here are 15 other ways you can help improve your credit score:

1. Correct your credit report within one month of receiving your discharge of debt from the bankruptcy court with the help of Robert Peters, P.A. and Credit Justice Services. Call us; we can explain our 90-day makeover.

2. Never co-sign for anything - especially family members.

3. Never share your bank account with anyone - no exceptions.

4. Get a secured credit card from a local credit union. They will require a deposit of anywhere between $300.00 to $500.00 but it's worth it. Always pay early & always pay more than the minimum payment.

5. Never pay off your credit cards - always keep a small carry over balance to establish a good payment record.

6. Open a checking or savings account. Lenders may look at this to determine if you can responsibly handle money.

7. Apply for store and gas credit cards that you would normally pay cash.

8. Apply for a secured card where you deposit cash and charge against it.

9. Pay your utility bills and rent on time for at least a year.

10. Find a friend or relative to cosign for you on a loan and pay it on time.

11. Look for car dealers and mortgage brokers that attest to be "bankruptcy friendly". Buy a used car so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.

12. Try my friend Ric Burtelson who runs 3 car dealerships in Charlotte, North Carolina or Carmax.

13. Live within your means. Do not unnecessarily increase your debt to income ratio by taking on credit to purchase luxury items that you DO NOT NEED. Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle.

14. Pay your reaffirmed, pre-bankruptcy debts on time.

15. Close your Ebay and Paypal accounts! Neither Ebay or Paypal extend credit to their members yet both randomly pull members credit reports without written authorization which will lower your credit score. Ebay Inc. also shares your personal info with their entire corporate family (all subsidiaries worldwide), their vendors, etc. etc. etc. thus substantially increasing your level of risk for identity theft by leaps & bounds.

We know that your past does not determine your future, and that anyone can make mistakes and wind up in a position that they did not expect. It is our hope that people who come to our office and utilize our services can get a fresh start on life.