1. Apply for a secured credit card. After bankruptcy, go to your local bank or credit union and open a secured card, a card secured by a small deposit (savings account with $500 in it) with a small limit. Use the card cautiously, paying off any balance in full and on time each month. You don't have to carry a balance to build good credit.
2. Pay on time! Your payment history makes up about 35% of your credit score. Paying bills on time each month is the easiest way to establish good credit.
3. Get a small car loan or line of credit loan. A year or two after bankruptcy, get a small loan of some sort which you can afford. While your interest rate may be higher because of bankruptcy, over time after you've rebuilt your credit, your next interest rate will be lower.
4. Do not close accounts. People mistakenly believe closing accounts will raise their credit score. Wrong! Closing accounts only reduces the credit available to you thus lowering your credit score. If you think you'll be tempted to charge if you keep accounts open, better to just cut up the cards but keep the accounts open.
5. Use credit sparingly. Know your own limits and keep balances way below the limits. Limit charging and pay all bills when due.
Lucy Hebron represents clients in East Texas counties: Camp, Cass, Harrison, Marion, Upshur, Anderson, Cherokee, Gregg, Henderson, Panola, Rains, Rusk, Smith, Van Zandt and Wood and the following cities: Pittsburg, Linden, Marshall, Daingerfield, Gilmer, Palestine, Jacksonville, Longivew, Arp, Athens, Brownsboro, Carthage, Overton, Emory, Henderson, Kilgore, Tyler, Bullard, Elkhart, Frankston, Rusk, Mt. Enterprise, Gun Barrel City, Canton, Quitman, Hideaway Lake, Lindale, Whitehouse, Troup, Winona, Van, Ben Wheeler, Grand Saline, Fruitvale, Edgewood, Wills Point, Quitman, Mineola, Hawkins, Yantis, Alba, Tatum, Holly Lake Ranch and Winnsboro.
We are a debt-relief agency. We help people file for bankruptcy under the Bankruptcy Code.
The information on this site is for general information only. Nothing on this site should be taken as legal advice for your individual case. You should consult an attorney for advice on your own situation.