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How do you rebuild your financial house after bankruptcy?

On Behalf of | Jan 12, 2022 | Bankruptcy

Rather than wait to put yourself back on solid financial ground after filing bankruptcy, you want to get a head start. Taking the proactive approach could benefit your financial health sooner rather than later.

NerdWallet explores tips for rebuilding credit after bankruptcy. Learn how to bounce back from monetary missteps with grace.

Check your credit report and score

Once you claim bankruptcy, prioritize checking your credit report to make sure it does not contain inaccuracies that harm your score. Specifically, look for inaccurate negative details, not negative information. While you may not enjoy negative information on your credit report, you cannot eliminate accurate negative details.

It also makes sense to monitor your credit score closely in the months after you file for bankruptcy. Because you have access to different credit scores, check only one type regularly.

Choose the credit product

You could have several credit products to choose from to improve your score and show lenders you are not a risky borrower. Examples include secured credit cards, secured loans, becoming an authorized user and asking for a co-signer. Each product has unique advantages for different situations. For instance, if you have friends and family with good credit, you could ask to become an authorized user on someone’s account to use her or his score to improve yours. To work your way back to qualifying for standard, unsecured cards while rebuilding your credit, make a deposit and open a secured credit card account.

Claiming bankruptcy could be the chance you need to ease financial stress and anxiety. With a well-thought-out post-filing plan, you could set yourself on the right financial path.