How to Rebuild Credit, Post-Bankruptcy

You are correct in that the credit market has changed in the last 2 years. I filed chapter 7 in 2004 and my credit score droped dramatically. However, I kept making payments on my vehicles (as those were not wiped out) and about 2 years later later, I was able to finance a new vehicle with zero percent interest. I did get a secured credit card and charged every month and paid the balance off. After about of year of that, i was able to secure a regular Visa and Mastercard with decent interest rates (under 10 on one and 12 on the other). I even purchased an additional vehicle a couple of years ago, but with 4.9% interest.

And just this past summer we purchased a house with a 5% fixed interest rate. Of course our previous mortage and previous auto loans were reaffirmed and our payments were always made on time, so I think that helped as well.

Of course I still do get denied on some credit applications (like American Express) I don't think they will ever give you a card while in bankruptcy, but I only use the 2 that I have not and I don't even apply anymore for additional credit.

Just keep making your current payments on time and little by little the credit scores go up and you'll eventually get back to where you were.

RDW of TX 1:55PM October 05, 2009