Getting credit after bankruptcy is easier than you think

One popular misconception about bankruptcy is that it will prevent you from ever obtaining credit again. However, it may surprise you at how quickly you can get loans and credit cards after bankruptcy. It is not as difficult as you think.

While it is true that filing for bankruptcy impacts your credit history, it also wipes out your debt and provides you with a chance to start over. Consider these guidelines for getting credit after declaring bankruptcy.

Ask to be an authorized user

 One easy method for rebuilding credit is becoming an authorized user on someone else’s credit card. If you have a family member or friend who has good credit and is willing to let you sign on, this can be a great benefit. You should only do this if the primary cardholder carries little debt and pays bills on time. If the primary user has significant debt or a history of late payments, it will hurt your credit score even more.

Think about a credit-builder loan

 There are small personal loans that exist purely to help people like you establish and improve credit. Financial institutions set aside the amount you borrow, then you make payments on it until you totally pay it off. As you make payments, the bank will report it to the credit bureaus.

Consider a retail or secured credit card

 It can be hard to get an unsecured credit card soon after bankruptcy, but you have other options. You may be able to get a credit card from a retail store. Generally, it is easy to get approval for these types of cards, and they can help you recover your credit history. You may also have an easier time getting a secured card. Secured cards are backed by deposits you make to the bank or credit union.

Do not let the myth of never getting credit again deter you from bankruptcy.