When you file for bankruptcy, your credit score takes a major hit. This can make obtaining competitive rates on loans and credit cards challenging for quite some time. But while it may take some time to rebuild your credit score, it is possible. Here are some steps to take to get your credit score back on track.
How to rebuild your credit after bankruptcy
If you are currently going through or have recently gone through bankruptcy, there are a few things to keep in mind when rebuilding your credit. Here are a few rules of thumb to build credit after bankruptcy:
- Don’t try to borrow money too quickly.
- Focus on making on-time payments.
- Build an emergency fund.
- Stick to a budget.
- Keep a close eye on your credit reports and scores.
Beyond these, other strategies can help.