credit after bankruptcy

There are many steps you can take to rebuild your credit after bankruptcy.  Some of the easiest ways to rebuild credit after bankruptcy include the following:

• Check your credit report after bankruptcy for credit report errors
• Secured credit card
• Co-signed credit card or loan
• Authorized User

Checking your credit report after bankruptcy is essential.  If your credit report contains errors, this could hurt your credit and lead to the denial of credit or loans.  For example, your credit report after chapter 7 bankruptcy should report discharged debts as closed, and without a balance.  Sometimes collection agencies will not update your credit report, or will open new collection account tradelines after your bankruptcy even though the underlying debt was discharged in bankruptcy.  Don't wait until your denied credit to take action.  Check your credit report 60 days after your bankruptcy discharge to ensure there are no errors or mistakes on your credit report.

A secured credit card is similar to a debit card and can help rebuild your credit after bankruptcy.  A secured card requires a cash collateral deposit that becomes the "credit line" for that account.  For example, if you put $100 in the account, you can charge up to $100. 

A co-signed credit card or loan can help rebuild your credit, but you need to have a friend or family member with good credit history who is willing to co-sign for you. 

Being an authorized user on someone else's account can also help you rebuild your credit after bankruptcy.  Being an authorized user mean that you are allowed to make purchases with someone else's credit account, but are not personally liable for payment of that account.   Being an authorized user can appear on your credit report, and can help rebuild your credit if the primary accountholder makes regular payments and keeps the account in good standing.