How To Improve Your Credit Score After Bankruptcy

Many people don’t realize the importance of a credit score. A solid credit score is an important tool that will help you get loans, mortgages, and credit cards. However, if you have recently filed for bankruptcy, your credit score will have dropped significantly. 

But, the good news is that filing for bankruptcy can actually help you improve your credit score in the long run. However, it won’t happen automatically, and there are some steps you need to take now to start improving your credit score. 

What is a credit score and why it is important?

Your credit score is a number from 300-850 and is a tool used by banks and other lenders to determine whether or not you are a good candidate for loans, credit cards, mortgages, and other financial products. 

If you are considering filing for bankruptcy, make sure that you first speak to a Miami lakes bankruptcy attorney. They will be able to discuss the options that you have regarding types of bankruptcy, guide you through the process, and will give you guidance on how to improve your credit score. 

Although bankruptcy can have a severely negative impact on your credit score, it will not last forever. Bankruptcies will stay on your report for either seven or ten years. However, there are some things you can do to improve your credit score in the meantime. 

How to build your credit score after bankruptcy

Once you have filed for bankruptcy, here are some good financial habits you need to start practicing straight away. Most people start to see an improvement in their credit score one or two years after they file for bankruptcy. Once your debts get paid off or discharged from your credit report, your credit score will improve. Here are some other ways you can build your credit score after bankruptcy:

  • Make all debt payments on time: if you have filed for chapter 13 bankruptcy, you will be given a payment plan which you will have to stick to. If you make sure you keep up these regular payments (as well as any other loans you may have taken out), you will be adding positive information to your credit report which will improve your credit score over time. 
  • Stay on top of bills: not only should you be paying your debt repayments on time, but you also need to make sure you are staying on top of all of your other bills. If you don’t make your bill payments on time, your credit score will be negatively affected. 
  • Have a low credit utilization rate: your credit utilization is the percentage of your credit limit that you use. If you have recently started using more of your credit limit or maxing out your card, it will lead to a significant drop in your credit score. You should aim to only use about 25% of your maximum credit limit every month. 
  • Save for emergencies: if you don’t have any money in savings and are met with an unexpected financial emergency, your finances will be thrown out of whack and your credit score will be negatively impacted. 


Your credit score is one of the most important financial tools out there, so make sure that you follow the above tips and contact a trusted bankruptcy lawyer to get yours back on track once you have filed for bankruptcy.