9 steps to rebuilding your credit after bankruptcy
Credit Scores After Chapter 7 Bankruptcy
Your bankruptcy won't prohibit you from obtaining new credit and moving on with your life. If you're like most, your case will move through the process in about four months, and you'll be able to begin rebuilding your credit after receiving your bankruptcy discharge.
Getting a credit card after bankruptcy isn't impossible, but it may be difficult due to the long-term damage bankruptcy does to your credit score. This can be frustrating for bankruptcy filers, since responsibly utilizing a credit card is one of the ways you can repair your credit.
By continuing to pay all of your bills on time, and properly establishing new credit, you can often attain a 700 credit score after bankruptcy within about 4-5 years after your case is filed and you receive a discharge.
What is the average credit score after chapter 7 discharge? Within 2-3 the months, the average credit score after chapter 7 discharge will suffer a 100 points initial jolt. It usually remains in the 500-550 range for the average debtor, unless he was already wallowing in the 450s, for default right and left.
How long do I have to wait after Chapter 7 bankruptcy to buy a car? Though it's possible to apply for a car loan after your Chapter 7 discharge, that could take awhile: cases generally last a total of about 3 to 5 months from the date of filing to the day your debt is discharged.
Best credit cards after bankruptcy overview
| Credit card | Best for |
|---|---|
| Credit One Bank® Platinum® Visa | Unsecured card with rewards |
| Secured Mastercard® from Capital One | Potential credit limit in excess of your security deposit |
| OpenSky® Secured Visa® Credit Card | No credit |
| Discover it® Secured | Secured card with rewards |
Keep your balances low or at zero and pay on time. Though it will take a few years to achieve an 800 credit score after bankruptcy, you can begin to rebuild your credit successfully.
No one is going to fault you for wanting a good credit score. It comes with financial benefits. The fact of the matter is, your credit score is going to be damaged after you file for bankruptcy. But it's also a fact that you can rebuild your credit after filing for bankruptcy.
If you've gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy's dismissal or discharge to get a USDA loan.
For a trouble-free Chapter 7 bankruptcy, avoid these transactions before filing.
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