Bankruptcy and Rebuilding your Credit

These days, many Americans could be only one life event away from a potential bankruptcy.  Maybe you got laid-off, were forced to exhaust your savings and you can’t cover your bills. Or, perhaps you had an unexpected health crisis and your medical bills have wiped you out financially. On the other hand, it could be as simple as your actual income versus overspending.  Whatever the reason behind it, bankruptcy and credit repair after bankruptcy is no small affair.

However, don’t be discouraged, because Fixing credit after a bankruptcy starts today. First, get in the habit of not charging more than you can pay off each month. Next, it may seem counter-intuitive, but consider applying for a secured credit card to help in your efforts for credit repair because while you may only qualify for a $500.00 or less credit limit, a secured credit card could be your “golden ticket” to rehabbing your credit score. The key take-away here is that while a bankruptcy may remain on your credit report for up to ten years, you can work toward rebuilding what you’ve lost credit-wise the day your bankruptcy file is closed.