You have a bankruptcy on your credit history.
What exactly does that mean? Basically, it means that you have to start over in terms of building your credit.
It also means that lenders are going to be more cautious when it comes to lending you money.
However, there are several things that you can do to establish good credit after a bankruptcy.
1.
Create a budget and stick to it.
Many consumers who declare bankruptcy have gotten into the horrible habit of living outside of their means.
Rather than spending less money than they make each month, they simply "charge it.
" This is the perfect time for you to start over and one way to do that is to change your habits.
Sit down and create a realistic budget.
Look at how much money you make each month and carefully consider all necessary expenditures.
Make sure to budget for emergencies such as car repairs, etc so when these things happen, you are prepared to pay for them.
2.
Credit cards.
Lenders are going to be more hesitant to lend to you.
That is just one of the ugly facts about bankruptcy.
However, you have the opportunity to prove them wrong.
Apply for either a secured credit card or a prepaid credit card.
These types of credit cards allow you to build credit in a low-risk manner.
These credit cards also help establish healthy credit card habits.
3.
Payments.
Another great way to establish good credit is to make all of your payments.
As you start out, you might only be able to pay the minimum payment.
As you continue to develop smart financial habits, you will free yourself from unnecessary debt.
You will be able to pay monthly payments in full.
Eventually, you will be able to meet all of your monthly obligations in full.
This is your goal.
4.
Due dates.
One of the easiest ways to build good credit after a bankruptcy is to always pay your creditors on time.
Never miss a due date and never make a payment late.
Do everything you have to do to make sure that all of your payments reach the proper creditor on time.
This step goes a long way in building credit.
It isn't the end of the world if you have declared bankruptcy.
Follow these simple steps to rebuild your credit and establish good credit.