If you are nearing retirement or are already in your golden years, recovering from a bankruptcy may be the least of your concerns. However, when debt becomes too much to bear, and extreme measures must be taken to preserve some semblance of wealth through bankruptcy. But the good news is that even after a bankruptcy, life goes on and you can rebuild your credit rating. This post will highlight a number of ways of how you can achieve good credit again.
Get a pre-paid credit card – Using a pre-paid credit card is an excellent way to demonstrate that you can use credit responsibly. Essentially, money is put on the card like it is included in a common checking account that is attached to a debit card. However, you pay off the balance each month. More importantly, there is little, if any risk to the lender.
Keep your credit card balances low – If you get a new credit card, whether it is pre-paid or not, keeping the balances below 50 percent is a good way to demonstrate your responsibility.
Check your credit report –After a bankruptcy, your former delinquent accounts should show zero balances or include a note that the debt was discharged in bankruptcy. As we have described before, not all credit reports are accurate, so it is worth checking on it on a regular basis so that you can dispute errors.
Shop around – Lenders know that people who have just emerged from bankruptcy are reliable customers because they have a vested interest in rebuilding their credit. With that said, you can shop around for the best deal for you.