How to Rebuild Credit After Chapter 7 Bankruptcy

Chapter 7 is a way for a consumer to eliminate debt. The bankruptcy can wreak havoc on a person’s credit score and record. Most people believe that it is not possible to rebuild their credit after the bankruptcy is discharged. There are many things a person can to boost their credit score. Some people are able to rebuild their credit in as little as three years.

How to Rebuild Credit After Chapter 7 Bankruptcy

1. Obtain a secured credit card to rebuild credit. This is the easiest and fastest way to get credit. You will have to put up a deposit on the card. The use of the card will boost your credit and possible open the opportunity for an unsecured credit card in the future.

2. Begin to pay off any debts that were not discharged in the bankruptcy.

3. Obtain your credit report. Look for accounts on it that do not belong. Also look for accounts that were discharged but have errors because this can affect your score. Write dispute letters to the each credit bureau if you find errors.

4. Make sure that any payments after your bankruptcy are paid on time.

5. Order a credit report every 12 months to check for errors and fraudulent activities. Some creditors may come back and report bad history after it has been discharged.

6. Contact some of your old creditors to see if they will give you credit. Many companies have a second chance program so you can start all over with building your credit.