Improving your credit after having to file for bankruptcy can often seem like a monumental task, but there are numerous methods available to you that can help you achieve the goal of having a decent credit score after your bankruptcy. Listed below are just two of the many ways to improve your credit after filing for bankruptcy.
Consider Asking Your Bank For A Secured Card Or Secured Loan
One of the first steps you should take when trying to improve your credit after filing for bankruptcy is asking your bank for a secured card or secured loan. A secured card is one where you will actually deposit money into a bank account to act as collateral for the credit card.
The amount of credit that you will actually be given is based on the amount of money that you deposited into that account. While this type of credit card will typically have quite high-interest rates and even some annual fees, it is often easy to qualify for even after you have declared bankruptcy and any activity on that card will be reported to the credit bureaus so that you can start rebuilding your credit score and history.
Additionally, you can also ask your bank for a secured loan, which will often result in the bank depositing money into an account for you that you can only get access to once you have made the necessary payments to have that money released. The reason that you want to consider this type of loan is that while you are making those payments to get the money released, the bank is reporting positive information to the credit agencies.
Consider Becoming An Authorized User On A Friend Or Family Member's Credit Card
Another way to improve your credit after filing for bankruptcy is to consider becoming an authorized user on a friend or family member's credit card. The way this works is that your friend or family member will go to their financial institution and have you marked down as being able to use their credit card, which will often occur without your credit having to be checked at all.
The reason that this can be helpful is that many banks and credit card companies will actually report whenever an authorized user makes a payment on time on the card. This can result in your credit going up even if you are not a cosigner on the account.
Speak to a credit professional or financial planning company like FicoStar Credit Repair today to discuss what to do to improve your credit after having filed for bankruptcy. Considering asking your bank for a secured card or secured loan and becoming an authorized user on a friend or family member's credit card are both effective ways to improve your credit score after you have filed for bankruptcy.