Attorney Bradley Hawley

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How can I rebuild my credit after bankruptcy?

On Behalf of | Oct 25, 2019 | Bankruptcy |

While going through a bankruptcy in Alabama may be a trying time, in reality the end result is very liberating. Once you get through the bankruptcy process, you will be able to begin your financial life with a mostly clean slate. Of course, the bankruptcy will stay on your credit report for at minimum seven years, but that does not mean you cannot start rebuilding your credit right away. While it may seem counter-intuitive, according to, one of the best ways to rebuild your credit is to get another credit card. 

Of course, we are speaking about a special kind of credit card. These credit cards are called secured credit cards. They are different from unsecured credit cards, which is what most of us think of when the word “credit card” is said. A secured credit card will require you to put down a deposit before using the card, and that deposit becomes your credit limit. For example, if you put $500 down on a secured credit card as a deposit, your credit limit then becomes $500. 

Secured credit cards and help you rebuild your credit after a bankruptcy. The idea is that you obtain a secure credit card and use it very sparingly and pay it off religiously. The credit card will then report this to the credit bureaus and this will help you improve your credit. Even if you have very bad credit, you will be able to find a secured credit card that will accept you, given that you need to put down a deposit first. 

Another potential option if you do not wish to go the secured route is to choose a retail credit card. Many retailers offer credit cards and their requirements are often much less strict than traditional credit issuers.