Legal Free Ways to Repair Your Credit after Filing for Bankruptcy

A Credit Article Contributed by Brandie King

Legal Free Ways to Repair Your Credit after Filing for Bankruptcy

This article will help you if you have filed bankruptcy and now are looking for legal free ways to repair your credit. Follow these methods to prevent ending up in the same situation that caused you to file bankruptcy in the first place.

Legal Free Credit Repair Method 1: Credit Cards

The best way to start rebuilding your credit is to get one or two credit cards. Don't use them for anything and everything you can though. Only use them for purchases each month that you will be able to pay the bill in full on when it comes in. The last thing you want is to start making a lot of big purchases, not be able to keep up with the balances, and end up in the same financial situation you were in before you filed bankruptcy.

You can save several hundred dollars in interest charges each year by paying all of your credit card balances in full every month. If you get into the situation of not being able to pay the balances on any of your cards in full then quit using that card until the balance is completely paid.

Watch out for the credit card terms though. Many of them carry very large annual fees and extremely high interest rates. Try to find one or two that have reasonable terms and stick with those. If you can't get a regular credit card with reasonable terms then contact your bank about getting a secured credit card from them.

Legal Free Credit Repair Method 2: Department Stores/ Gas Cards

Next you can try getting credit cards from department stores, gas companies, and other stores. A lot of these types of cards will have lower rates and fees, as well as having looser rules for qualifying for them. Once again make sure that you keep paying the balances in full each month.

Legal Free Credit Repair Method 3: Your Budget

Make a list of all of your necessary expenses, your unnecessary expenses, and your frivolous expenses. Necessary expenses include things like rent/mortgage payments, car payments, and insurance. Unnecessary expenses include extras on your phone bill (Caller ID, Voice Mail, Call Waiting) and cable or satellite TV service. Frivolous expenses include going to the movies and eating out. Take a long hard look at your list of expenses and eliminate anything and everything you can possibly eliminate.

On things that you can't eliminate completely, such as your phone bill, try to reduce the amount that you spend on it each month by getting rid of services that you don't need.

Legal Free Credit Repair Method 4: Revisit Your Credit Reports

Obtain copies of your credit reports from the three credit bureaus (Experian, Equifax, and Trans Union) to make sure that the debts wiped out by your bankruptcy have actually been removed from your credit reports. If debts that were wiped out during your bankruptcy start appearing on your credit report again then you need to call the credit bureaus, find out what their dispute policies and rules are, and dispute the charges.