Man managing his finances

Life After Bankruptcy: Get Stability by Rebuilding Credit

Deciding to file for bankruptcy is incredibly difficult, and it’s not a choice anyone would wish upon someone else. After your debts have been discharged, there’s the illusion of a fresh start. But how do you move forward after your credit has hit rock bottom?

It is difficult to navigate your finances if you don’t have a good credit score. Bankruptcy stays on credit reports for ten years, and that will have a tremendous impact on your loan applications from this point forward. However, hope is not lost: there is life after bankruptcy. In fact, your credit score one year after bankruptcy may be even higher than when you were buried in debt. This is your chance to recover, rebuild your credit, and set yourself up for healthier finances.

Here are some simple steps you can take to build your credit score back up after bankruptcy:

1. Check Your Credit Score

Before you can try to build your credit back up, you need to know where you’re starting. Check your credit score regularly to see how you are progressing. You need to know your credit score so you can outline the next steps you need to take to build it back up. Take a look every once in a while to track your progress. As long as you keep your finances in check, you’ll build your score back up in no time.

2. Improve Your Financial Profile

The steps to building your credit score from scratch can still apply to those recovering after bankruptcy. Some products may be limited, but the concept is the same. You need to take steps to prove that you are a reliable borrower.

Banks and lenders don’t automatically reject an applicant with a history of bankruptcy. It’s a matter of applying for the appropriate credit products.

Secured loan – Local credit unions and community banks offer credit-builder loans that can help build your credit score back up. Getting a secured loan means you will borrow against the money you have on deposit, similar to collateral. You will not be able to access this deposit as you pay off your secured loan. Some lenders offer the option of securing your loan in a savings account that you cannot access unless you make the necessary payments.

Secured credit card – The easiest way to get a credit card is to apply for a secured credit card. You pay a deposit to your bank, and that amount is set as your credit limit. Secured credit cards have high interest rates and annual fees, so you should always pay off your monthly statement in full. After a year or two of being a responsible owner of a secured credit card, your bank may declare you eligible for a regular credit card.

3. Maintain Good Financial Habits

You need to stay on top of all your financial obligations from now on, and this is your chance to start fresh. Keep track of all your bills and debt, and create a budget so you can pay them off as quickly as possible. Track your expenses to identify areas where you can scrimp and save. Build an emergency fund so you have money to spend in case of an unexpected expense. These simple steps will keep you on track as your credit score recovers.


Rebuilding your credit score after bankruptcy will take time and effort, so you have to be as patient as you can. Be very conscious of your spending habits and make sure to keep up with all of your bills and new debt. As long as you pay your dues in time and keep track of your credit score, you’ll be able to rebuild strong credit in just a few years.

If you’re looking for the best bankruptcy attorney in Tyler, TX, you’re in the right place. We are a family firm, and we fight for families and small businesses. Contact our office for a free initial consultation, and our experts will help you get out from under your debt.

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