One of the damaging consequence post bankruptcy is that your credit score will become low for some time.  The importance of a good or decent credit score will determine if you can ever apply for a loan on a car, house or even a credit card.  Since credit score is almost as important as your social security number, you should make every effort to increase your credit score post bankruptcy filing.

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Post bankruptcy credit repair is not as difficult as everyone makes it out to be.  As a matter of fact, I received a letter in my mail from Capital One Bank saying that I have been pre-approved for a unsecured credit card because the bank knows I have just been awarded a bankruptcy discharge.  I received my first credit card post bankruptcy and has been working towards increasing my credit score.  At the time of this posting, my credit score stands at 750, only 13 months after receiving my bankruptcy discharge papers.

We want you to start repairing your credit score as soon as you have filed for bankruptcy protection.  The easiest and guaranteed way to repair your credit score is to do the following:

1. Get a secured credit card that will report your payment history to qualified credit reporting agency

A secured credit card is essentially a prepaid credit card.  So if you have a $500 prepaid credit card, you can only spend up to $500 and not a cent more.  You want to setup your new credit card to pay for some recurring monthly expense such as your cell phone bill.  Once you have setup this monthly cell phone bill payment through your secured credit card, you will want to replenish your secured credit card by the same amount or more monthly.  Using this method over a period of 12-18 months can help to repair your credit score.   This will show the lenders that you have become responsible and trustworthy and thus will not resort to another bankruptcy default again.  A secured credit card is easily obtained as most of them do not require any credit history inquiry.

2. Apply for a unsecured credit card 12-18 months after using your secured credit card

Unsecured credit card is issued by the lenders based on your income and your credit history, therefore it is more difficult to get if you have just gone through the bankruptcy process.  But once you are able to establish a good history using the secured credit card method, you have a better chance of obtaining a unsecured credit card.

Do not “max out” your credit cards (whether it is secured or unsecured) during this process of repairing your credit score.  Lenders want to see that you are using your credit line frugally and that you can pay it off on time.

Here are some of the unsecured prepaid credit cards that can help you rebuild your credit score.

	Rush Card Rushpath to credit (repair your credit score) Online bill payment using your secured credit card Online money tools to help you manage your finances Free instant account alerts on your mobile phone Click here to apply now.
	Vision Premier Prepaid Visa FREE PayFit Credit Builder (repair your credit score) Free online bill payment, no transaction fees Free customer service, free direct deposit Free email and text message alerts Click here to apply now.

Tags: Credit score, Secured Credit Card, Unsecured Credit Card

This entry was posted on May 20, 2010 at 2:51 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Post Bankruptcy by ssanchez 2 Comments