If you are one of the many people who have had to file bankruptcy, don't fret. All is not lost. Yes it is devastating as well as life-changing for an individual but there are some things that you can do to get your credit score back in tip top shape. There is hope.
1. The first step to take is to get a secured credit card. Apply for these cards on-line with lenders that have extensive training in servicing post-bankruptcy secured credit cards. Do a Google search using terms like secured credit cards, high risk credit cards and possibly hard money lenders. The use of these kinds of lenders is helpful because they will be useful in assuring that you will get the best rate possible. This is essential because filing bankruptcy will automatically ensure that you will be charged higher rates than normal.
2. Get more than one secured credit card, being careful to keep the balances on both cards minimal or manageable for your budget. For example, if your credit limit is $2000.00, keep your balance at $500.00 or below. Your debt to limit ratio is 25% and is less than the recommended 35% or less that lenders like to see.
3. Next step is to make large payments on the credit card balances. Do not only pay the minimal amount required. Try to always pay more than requested, but do not pay the credit card balance in full. Make punctual payments for at least 6 months to a year, after which time if you are able, you can pay the balance in full. This will establish a solid payment history, doing wonders for your credit score.
4. Open diverse credit accounts. Apply for different types of installment loans, still being mindful that you will have to make monthly payments on each. Be careful to not open too many accounts because you want to make sure that you can handle the payments and you do not want to have too much debt. That can greatly hinder a lender from approving you for credit. Some examples of installment loans are car loans, personal loans, department store credit cards, jewelry store credit cards, and gas credit cards. Lenders like to see that you are capable of managing different types of payments.
5. Most importantly, make all payments on time. Late payments can decrease your credit score by hundreds of points.
By following the suggestions listed above, you will gradually see an increase to your credit score. You will soon be on your way to financial security and you will be able to repair your credit report in less time than it took to damage it.
For more simple tips to repair your credit, go to: http://www.attorneycreditrepairguide.com/
David Shapiro is an experienced credit repair attorney. He has helped numerous people for over two decades to clean their credit and increase their FICO score. He has also shown his clients how to save thousands of dollars by paying less interest. David Shapiro offers a free special report titled 'The Truth About Credit Repair' and 'Understanding Your FICO Score'. To receive these free reports visit: http://www.attorneycreditrepairguide.com/
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