Rebuilding credit after bankruptcy

[bethany p]

What is the best way to rebuild your credit after filing bankruptcy?

[regina157]

Secure credit card. This is the kind where you have to deposit $500 into the account - giving you a $500 credit limit. Make a purchase here and there and pay the bills on time every month and you're on your way. When you want to cancel the account, you still get to withdraw that original $500 you deposited.

[acatlam]

The best way to improve your entire personal financial picture is to avoid using anymore credit. Don't be a slave to your credit score. There are better ways to prove that you are a financially fit person than trying to rebuild your "I love debt" score.Studies show that folks that use cash instead of debit and credit cards spend 10-40% less each time they shop. Which is why Visa has commercials that try to make people look bad for using cash.

1. Spend less than you make.

2. Save $50 each month as an emergency fund, instead of keeping an emergency credit card.

3. Learn to budget and save additional money for annual events like Xmas and birthdays.

4. Use a written list, and cash when you shop. If you only plan to spend $40 on groceries, only take $40 cash with you.

5. If a company insists on taking credit cards instead of debit cards, stop supporting them and switch to a competitor.

6. Learn to say "No" to anything and everything that will tempt you to apply for credit. Unless you want to end up filing for bankruptcy again. No one ever got rich from their credit card points program, but everyone gets richer when they spend less than they make.