It is unfortunate that for whatever reason, there are times when the only option open to a person is bankruptcy and although this will harm your credit score, it could make it easier to improve it later on. You can content yourself with knowing that while bankruptcy will stay on your credit card for seven to ten years, it is not forever, and once the bankruptcy details are finalized you can set about repairing your finances and eventually establish credit after bankruptcy. Nowadays, not all of your debts are discharged with bankruptcy and it is up to you to manage those debts and make sure that they are paid on time. Once you have done this for a while and can show that you are reducing your debt and paying off what you owe, you may want to look for credit.

Before you do anything else you should check your credit report. The law allows you to see the reports that all three national agencies hold on you once a year, so take advantage of that and check the report thoroughly. If debts that should have gone under the bankruptcy heading are still listed separately you will need to point this out to the agencies in writing because this will affect your credit score even further – and you are trying to build it up. The fact is that creditors will look at those reports every time you apply for credit, so it makes sense to ensure as far as possible that entries are up to date, not double listed, and that there are no listings for unpaid debts on amounts that you have already paid.

Getting your credit score fixed to show an accurate reflection of your credit history, without any errors, is the first and probably most important step that a person can take when they are trying to establish credit after bankruptcy. If you want to check your credit report more than once a year then you will have to pay for it but it is worth doing this so that you can keep an eye out for any further errors and also see how you are progressing a couple of times a year. Get yourself a savings account and a secured credit card, the card is attached to the savings account and however much money you put into the account, determines how much you have to spend on the card. Using a secured credit card to pay bills and use for purchases is an excellent way of building credit after bankruptcy. Vivix Credit Solutions has a network of banking, credit card and retail partners that have credit builder programs that all of our clients can qualify for, regardless of current credit challenges – the company also has a credit coaching program that outlines step by step what each client can do to re-establish their credit after bankruptcy.