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6 Tips to Improve Your Credit Score After Bankruptcy


This is a guest post from Daniel Stone, attorney at the Stone Law Firm, LLC in South Improve Credit After Bankruptcy DischargeCarolina, where he primarily handles consumer bankruptcy cases for individuals in Columbia and Lexington.

Here are 6 tips to increasing your credit score after you obtain your bankruptcy discharge:

1.  Apply for 1 to 3 secured credit cards. I recommend getting a card that will allow you to put as high a deposit as possible. Why?  The disposable balance the credit card will report to the credit bureaus will be the same as your deposit. So, if you put down a $3,000 deposit, your credit report will show that you have access to $3,000 and that will significantly pump up your score.

2.  Once you get the secured credit cards, only use them for small items such as gas. Also, pay off the small balance each month. The initial credit increase I mentioned previously will go away if you start to carry a balance.

3.  What are some good secured credit cards to use? I look for two things. First, I want a card that will allow me to put down the largest deposit I can. A card with only a $200 deposit will not help you as much as one where you can deposit $5,000. Amalgamated Bank of Chicago will allow as much as a $10,000 deposit. Capital One will allow $2,500-$5,000. Second, I want to make sure the credit card I use reports to all 3 major credit bureaus. The cards above report to all 3.

4.  Monitor your credit report every six (6) months. Make sure all items that have been discharged in the bankruptcy are deleted. In addition, carefully monitor your report to make sure there are no other mistakes.

5.  When disputing items on your credit report, I recommend doing it in writing rather than their on-line service. In my experience, letters have to be dealt with by a processor and they have to manually input the information, which helps your case. Make sure you provide: your name, social, address, date of birth, and each account you are disputing. I also recommend certified mail.

6.  If you attempt to settle a debt on your report that is not discharged in bankruptcy, try your best to negotiate that the entire item be removed from your report in exchange for paying it in full or close to full payment. Settling a debt that still remains on your credit report usually does not help your score. In fact, sometimes it can even lower it. If it is removed, you should see a significant increase.

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Many people filing bankruptcy fear their post-bankruptcy financial future will be devastated. Therefore, choosing the route of bankruptcy is a very tough decision. Consumers who choose bankruptcy may feel as though they are chastised by society and may also feel they are being labeled as “irresponsible” or a “failure”. However, nothing can be further from the truth. Many people who file bankruptcy today are college-educated professionals. Even, some of the new bankruptcy filers have been former corporate executives, attorneys, and other professionals. Due to several reasons, including the recent recession and corporate lay-offs, divorce, increasing medical bills, etc, these people found themselves in uncontrollable circumstances and bankruptcy was their only way out from under a crushing mountain of debt. Many people are misled about what their post-bankruptcy lives will be like. Bankruptcy is not the end but a new beginning. With the proper knowledge and tools, people with discharged bankruptcies could be well on to their way to financial recovery within just a few short years. Visitwww.thebankruptcyshop.com for more information.
Posted @ Monday, July 09, 2012 11:18 AM by Bankruptcy Shop
I would like to know that if we file for bankruptcy, we will be able to keep our car, which has already been paid off.
Posted @ Wednesday, July 11, 2012 1:20 PM by Los Angeles Bankruptcy Lawyers
Thumbs up guys your doing a really good job.
Posted @ Thursday, July 12, 2012 6:26 AM by freecreditreport
You have suggested some good tips about improving credit score. Secured credit card can really help consumers to make good credit score. I also advise one thing that people should always repay all of their loan repayments on time.
Posted @ Saturday, September 15, 2012 2:59 AM by quick cash
You are saying right that people should monitor their credit score every 6 months. People should also control their expenses specially unwanted and unexpected expenses. All the repayments of your loans must be paid on time.
Posted @ Wednesday, September 19, 2012 7:08 AM by cash loans
Great tips, I would add, try getting cards with no annual fees and applying for cards with no application fees/costs.
Posted @ Thursday, December 13, 2012 2:13 AM by Los Angeles bankruptcy attorney
This article was awesome!! Thank you. Being fairly new to the credit and bankruptcy arena I am constantly trying to gather as much information as possible to try and keep myself headed in the right general direction. Spending some time on this post has given me a lot of great points to think about. In my recent research I have also been able to find some useful information related to this topic when I Googled the credit locker university. Thanks again! 
Posted @ Tuesday, April 09, 2013 3:09 PM by Alex
you can take cheap personal load like car loan to increase your credit score. but if you are able to pay installment of that loan.
Posted @ Friday, June 21, 2013 2:18 AM by Peter Mark
Posted @ Tuesday, December 03, 2013 3:19 PM by Mary
Disputing negative items on my credit report has been helpful. I wasn't interested in paying someone else to do it for me so I've been doing it myself. I Googled 'credit software'which made things a lot easier.
Posted @ Monday, December 23, 2013 9:34 AM by jake
Your financial plan should include your monthly expenses and earnings, and the measures that you are going to take to reduce your debts.
Posted @ Sunday, January 12, 2014 7:44 PM by Bankruptcy Australia
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