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How can you quickly rebuild your credit after bankruptcy?

On Behalf of | Oct 25, 2021 | Bankruptcy

After claiming bankruptcy, you have a long road to financial recovery ahead. Rather than work harder, work smarter to restore your credit.

Forbes explores strategies for strengthening your credit quickly. Learn how to rebuild your financial health and give yourself the gift of financial peace of mind.

Consider a secured credit card

After filing bankruptcy, you may have better luck qualifying for a secured credit card. You must make a cash deposit to set your credit limit and receive a secured card, but make sure you pay your bills on time. If you do not, you forfeit your deposit.

One benefit of secured credit cards is the smaller limit could keep you from overspending. Being forced to restrain yourself may help improve your credit utilization ratio.

Pay all your bills on time

Perhaps late payments led you to file for bankruptcy. If so, use your smartphone’s calendar to remind you to pay bills on time or early. You may automate payments, but always ensure you have the money in your bank account to cover payments before their due date.

Ask to become an authorized user

If your friends or family have good credit, ask to become an authorized user on someone’s account. That way, you have access to a credit card, but you do not have to make payments. The card’s history attaches to your credit report, and you take advantage of the primary cardholder’s on-time payment history.

Practice patience while rebuilding your credit post-bankruptcy. Knowing where to focus your spending and saving efforts may help you save time and energy.