Check your credit report
After 60 days of closing the bankruptcy case, order your credit report. Check for errors (inaccurate, out-of-date, incomplete, or unverifiable information) that the credit reporting agency can legally correct or remove. Write a brief statement to the agency explaining why you filed for bankruptcy and what you have done to resolve your financial problems. This explanatory statement (30-50 words) will always appear on your credit report unless you request that it be removed.
Get a secured credit card
With a bankruptcy charge, it is important to show that you are creditworthy. Get approved for a secured credit card. With this type of credit card, you can only spend what you have deposited into your account in advance. Make payments on time before interest accrues so the bank can send a good account history to the reporting agency.
Choose a secured credit card from an issuer that reports to one of the three major credit reporting agencies to make sure it helps rebuild your credit score. Try not to apply for too many credit cards (or new credit) because creditors always check your score before approval and this can lower your score.
automatic payments
To rebuild your credit by making sure you pay all bills on time, choose to automate all your recurring bills. This includes rent and utilities. Consider taking steps to lower your monthly bills, such as moving to a cheaper house where rent and utilities cost less, getting rid of cable and cell phones.
Set a realistic budget
Write down your expenses for the last three months and compare them with your monthly income. Set limits on how much you can spend making sure you live within your means.
Using your bank account
Always avoid overdrafts, bad checks or incurring bank charges. Use your bank account responsibly because anything you do will show up on your credit report. Even small bills must be paid on time.
Make smart financial decisions
Avoid any situation that puts you back in debt. Whether it means changing your friend group, taking a different route to work to avoid your favorite mall, or cutting back on eating out, simple changes can make a big difference in showing the credit company you’ve reformed. .
Set aside an emergency fund
Work to rebuild your savings by setting aside 5% of your net income each month. You can set up a standing order with your bank that automatically withdraws money from your checking account and sends it to your savings account. It will help you avoid borrowing money or worse, taking out a payday loan during emergency situations.
share your plan
Talk to your family about the bankruptcy case and the mistakes that led to that experience. Make them understand what lifestyle changes need to be made to rebuild your credit. Some members of your family can really hold you accountable.
The situations that led him to declare bankruptcy did not happen overnight. Likewise, it is likely that it will be some time before he can rebuild his credit history. The key is to learn from his mistakes and make sure that all of his payments are made on time, every time.