Five Ways to Rebuild Credit After Bankruptcy

Many Americans in Wellington, Florida who are facing bankruptcy try to avoid it out of fear that their credit ratings will be destroyed as a result. This is a valid concern, as almost everything is based in some way on your credit rating. If you want to purchase a home, get an apartment, use a credit card, purchase a car, or even apply for a job, you need to have a healthy credit score.

There is absolutely no reason why you cannot have an excellent credit score after a bankruptcy. All it takes is a little hard work and perseverance. You should start working to repair your credit rating immediately after your bankruptcy has cleared. This will be documented in a “Discharge of Debtor” document from bankruptcy court and is necessary to acquire before applying for a new credit line. After you receive this, you can begin seeking out credit in various forms. Here are five:

  1. Apply for a secured credit card with your bank or credit union. A secured credit card is not a traditional credit card. Rather, you give your Wellington, Florida bank or credit union an amount of money to hold (say, $1,000) and they give you a credit limit for the same amount. Some banks charge outrageous fees to open secured cards, so avoid opening cards with institutions who do this. Make sure that the bank will report your card to all three credit bureaus (Transunion, Experian and Equifax). If not, choose a different institution that will.
  2. After you file bankruptcy, you will likely receive credit card offers in the mail right away. Some credit card offers will be unsecured, meaning that you do not have to give the bank any money to open the card. Watch out for exorbitant fees and percentage rates associated with such cards. Every year, request an increase in credit. Do not maintain a balance on your cards from month to month. Your solution to increasing your credit score is by using the card and paying off the balance in its entirety on a monthly basis.
  3. Apply for loans. You can apply for either secured or unsecured loans after you file bankruptcy, much in the same manner as applying for secured or unsecured credit cards.
  4. Retail credit cards are more difficult to obtain after a bankruptcy. These are cards available through corporate-run companies in Wellington, Florida such as chain gas stations, office supply stores, department stores and so on. It is advisable that you hold off on applying for these cards until after you have re-established some credit in the aforementioned ways because if you apply too soon it could be marked as an inquiry on your credit and impact your score negatively.
  5. Finally, apply for credit cards through banks or credit unions and avoid the credit cards offered through high-profile corporate creditors. These tend to have lower interest rates and fees, but they are also more difficult to obtain.

Bankruptcy Wellington FL – Sean Koplow is a bankruptcy attorney in Wellington, Florida who has been practicing bankruptcy law for more than 15 years. Known for his compassion for the underdog, Sean has helped thousands of people just like you through the bankruptcy process so they can have a fresh start in life. If you are in need of legal counsel, please call 561-642-3000 to schedule an immediate consultation in our Lake Worth office. Or visit us online at

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