Rebuilding Credit After Filing Bankruptcy in Michigan


It is true that a bankruptcy filing stays on your credit report for up to 10 years after filing. However this does not mean that your credit is ruined for 10 years and you will never be able to get any credit during that period. You can begin rebuilding your credit right after your bankruptcy filing. The first step to rebuilding your credit is to address the issues that ultimately resulted in your bankruptcy filing. Avoiding the same mistakes in the future will help you on the path to rebuilding your credit. Also review your credit report and make sure it is accurate. You can obtain a free credit report from each of the three credit bureaus through It is true you need credit to get credit so you can begin to rebuild your credit by demonstrating you can make timely payments on your debts. Rebuilding your credit after bankruptcy does take some work on your part to make sure you make all bill payments on time and monitor your credit to make sure it is accurate- but it can be done.

Here are a couple of suggestions that you can do after bankruptcy to begin rebuilding your credit:

Obtain a secured credit card: It is possible soon after filing bankruptcy to apply for a secured credit card. This means you have to provide money up front that secures your line of credit. Make sure you avoid any offer for secured credit that includes an application fee or annual fee. Also make sure the lender will report to the three credit bureaus. Most importantly make sure you pay off the balance of the credit card in full each month. This will help improve your credit rating.

Obtain a car loan or other installment loan: If you have any installment loans such as a mortgage, car loan, or student loans that survive the bankruptcy make sure you immediately begin making all payments timely on these loans as that will help rebuild your credit. If you don't have an installment loan you might consider getting one. Installment loans can be harder to get after you file for bankruptcy but not impossible. You might be charged a higher interest initially (hopefully after your credit begins to improve you can refinance). Making timely payments on an installment loan will help to rebuild your credit. Make sure you only take out a loan you can afford to repay and make sure you make all your payments on time.