Your Credit Score After Bankruptcy

If you've recently come of out of bankruptcy and successfully discharged your debts, it's time to start looking for credit. It's important to be very cautious when applying for new credit cards as you will be surprised how many offers will accept you even though you've just recently gone through bankruptcy. To improve your credit score you should take on a couple credit cards with a decent balance of say $ 1,000 to $ 2,000 and only charge what you can afford to pay off each month.

Your bankruptcy will most likely have dealt a pretty rough blow to your raw credit score – it could possibly be in the 400 to 500 range immediately after your debts are discharged. Stay disciplined and live beneath your means and you could find yourself quickly rebuilding your credit score. There are plenty of example of people who bought their credit scores back up to 600 and approaching 700 just 3-4 years after bankruptcy. It's not an easy road, but you can get your score back up there with the right approach.

A bankruptcy can legally stay on your credit report for up to a decade, but the effect on your overall score will immediately diminish as soon as your bankruptcy case is closed. Even though it's tempting you can't live on a cash basis to rebuild your credit. You're going to have to get out there, open up a few charge cards and your score will come back – given enough time. Treat a bankruptcy as a wake up call to change bad habits. Maybe you were a shopaholic and an over spender – given the state of the economy It's not a bad idea to cut back and learn to do a little more window shopping.

Source by Chad R Fisher

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