How to Fix My Credit After Bankruptcy
- 1). Obtain a free copy of your credit report. This can be done online through AnnualCreditReport.com.
- 2). Look at the credit report to see whether there are any small bills you owe companies that you didn't know about. This can be $10 for a gas bill from an old apartment or $30 on a cable bill.
- 3). Pay these small bills off as soon as possible and ask the companies to note on your credit report that the bills have been paid off.
- 4). Determine what bill has the higher percentage rate on it. If you have a school loan debt of $30,000 with an interest of 4 percent, and a credit card debt of $15,000 with 12 percent interest, pay off the credit card first. However, while you pay off larger amounts on the higher interest rate, continue making payments on the lower interest rate also.
- 5). Avoid canceling any credit cards. Canceling a credit card can actually damage your credit score. If you do not use the cards for at least six months, the card companies can report your accounts as inactive, which may have a negative effect on your credit. It is a good idea to occasionally purchase something on the cards, such as gas once a month, just to keep the account active.
- 6). Pay off all your current debt before applying for any additional loans.
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