There are many benefits to filing for Chapter 7 bankruptcy, and one of them is the gift of sweet relief. However, one of the most challenging issues that people face post-bankruptcy is the task of rebuilding their credit. It is very likely that after filing Chapter 7 that your credit has fallen to around the mid-500s. According to NerdWallet, while bankruptcy will stay on your credit report for a decade, there are many things you can do to start turning your credit report around for the better.
The first thing to start making yourself look attractive to lenders is to create a budget to understand your finances and start amassing an emergency fund. It is key to understand how much money you have coming in and going out so that you can restructure your life and your credit. An emergency fund does not have to be huge: having a mere $250 in the bank can help protect you against last minute unexpected expenses.
Next, you can start exploring ways to improve your financial standing. There are many ways to go about doing this. A secured loan may be a good option, and this is when you put down a deposit and borrow against that money. This will show that you are in a position to pay back a loan and willl give the lending institution the security it needs to allow you to do this. You can also do a similar thing with a secured credit card. A secured credit card requires you to put down a deposit, and then that deposit becomes your credit card max.
Doing these things can help you improve your credit quickly, even with a Chapter 7 bankruptcy on your record.