Credit Repair after Bankruptcy

Credit repair after bankruptcy may seem like an impossible task, but with a bit of patience and determination, you will slowly be able to get back on your feet financially.

Here is a list of some things you can do to repair your credit and get back on track.

1. Complete the bankruptcy as soon as possible.
   If you are a first time bankrupt, you are eligible for automatic discharge in nine months. You must complete all necessary duties, including monthly reports to the trustee, attending credit counseling sessions, and making all payments. The faster you complete the bankruptcy, the soon it will disappear from your credit report.
2. Begin saving money. Saving money will help you repair credit after bankruptcy: we all know that banks loan money to those who do not need it - as opposed to those who are desperately in need. You must prove that you are capable of paying back the money, and the best way to do this is to show you have some savings. By putting a certain amount in the bank each month, you will gradually build up a good security deposit to be used for future borrowing.
3. Obtain a copy of your credit report. It is highly advised that you contact a credit bureau in your area to get a copy of your credit report. After all, it will be very difficult to repair your credit without knowing exactly where the problem areas are. Review the credit report for accuracy. If there are any mistakes, be sure to contact the credit bureau as soon as possible.
4. Get a secured credit card. This is one of the best ways to rebuild credit. You can use your savings on one card, to get a second credit card with a similar credit limit. It will appear on your credit report as a normal credit card, and you now have an extra credit card to use as you see fit.
5. Start an RRSP. With your additional savings, put money into an RRSP with a bank or investment advisor. If you contribute $1,000 to an RRSP, the bank will likely lend you another $1,000 to invest in your RRSP. This $2,000 will generate a tax refund at tax time that will be enough to pay off your loan. Your credit report will then show a paid off loan, and that will have a positive impact on your credit repair! In addition, you will have $2,000 invested in the RRSP.
6. Continue Saving. Your savings can now be used as a down payment on a car or house.

Repairing credit, especially after bankruptcy, will not be an easy task, and it could take several years; but, by carefully saving money, you will eventually have the ability to borrow again.