When you finally get your bankruptcy discharge, the last thing on your mind is probably going out and opening new accounts. But, the reality is that the quicker you repair your credit report, the faster your finances will get back on track.
The first thing you should do to start the credit restoration process is get a copy of your reports and make sure that all of your accounts are reporting accurately. If is very common for lenders to fail to accurately reflect that debts have been discharged via a Chapter 7 bankruptcy. Their continuing to report accounts as open and past due does serious damage to your credit and hinders your ability to reestablish yourself.
To get the situation rectified, you will want to dispute these items with each of the three major credit bureaus. Include documentation and you should have no problem getting these corrections made.
Your next step will be establishing new credit so that you can show that you have the ability and willingness to make on time payments. Getting credit cards after bankruptcy is one of the best ways to start. If your bankruptcy discharge is very recent, chances are that it will be difficult for you to get an unsecured credit card. And, even if you do it will likely be with a company than charges $195 in fees on a $300 credit limit! Your best bet is to get a secured credit card with reasonable fees. Ideally, you will find a card that has fees of $50 or less in the first year. (Not including interest charges of course!) You will want to verify that the card reports to all of the credit bureaus since repairing credit is your goal.
Once you have a secured card, use it wisely. Ideally, you can pay the balance off in full each month. Over time, you will build up your credit and be able to qualify for other types of loans.
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