Filing for bankruptcy is an important decision, and the Washington Law Center wants to make sure that the type of bankruptcy protection that you choose is the right one for you. Here are 6 tips to increasing your credit score after you obtain your bankruptcy discharge:
1. Apply for 1 to 3 secured credit cards. I recommend getting a card that will allow you to put as high a deposit as possible. Why? The disposable balance the credit card will report to the credit bureaus will be the same as your deposit. So, if you put down a $3,000 deposit, your credit report will show that you have access to $3,000 and that will significantly pump up your score, as a low balance-to-maximum ratio is favorable.
2. Once you get the secured credit cards, only use them for small items such as gas. Also, pay off the small balance each month. The initial credit increase I mentioned previously will go away if you start to carry a balance. (more…)