How to Rebuild Your Credit After Bankruptcy

How to Rebuild Your Credit After Bankruptcy

After bankruptcy, you will notice that there are literally hundreds of offers from various companies wanting to help you fix your credit. You may feel somewhat ashamed or humiliated. The road to re-establishing credit is not easy but with hard work and determination, you will be on your way to good credit.

When a person files for bankruptcy, the Office of the Superintendent of Bankruptcy notifies the credit bureau. This information stays on your credit report for 6 years after the discharge date and for a second time bankrupt, the information stays for 14 years after the discharge date. Once you’re discharged you can start to take these following steps to start rebuilding your credit:

Open a bank account – Open a new savings account with a bank that was not included in the bankruptcy. Regardless of your credit, you cannot be refused an account based on your credit history. Make an appointment with the banker and advise them that you’re trying to rebuild your credit and they will give you some solid advice.

Be a great saver – Take any extra money you may receive through a raise for instance and put it aside. Try and save at least 5% of your paycheque.

Obtain a secured credit card – A secured credit card is the same as a credit card except it’s backed up by money you already have in a savings account. The bank will hold this money as security and your credit limit will be the amount of the money you have in your savings account. Each payment you make each month will be reported to the credit bureau and will help improve your credit, however, only use what you can afford to repay in full each month. Never have a balance on any credit card that exceeds 50% of your credit limit.

Take out a small loan – Obtain a personal loan so that you have new credit reporting. Ensure that all your payments are made on time every month as any late payment will further damage your credit score. There are companies like Prudent Financial Services that specialize in repairing credit with open, affordable, same day loans to discharged and undischarged bankrupts with low interest fees.

Repairing your credit is Prudent Financials most serious commitment to save your money, your credit rating and your financial health. For more information, please visit

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