How to Rebuild Credit after Bankruptcy in Port Colburn

How to Rebuild Credit after Bankruptcy in Port Colburn

Posted on August 2, 2021

If you’re recovering from bankruptcy but need a new car, you might think you’re out of luck. That isn’t’ true. It will take time and it will take effort to rebuild credit score after bankruptcy, but with some actionable advice from the auto loan experts, you could be driving again in no time.

Well not, ‘no time’ but certainly within a shorter time than you might imagine!

Our Port Colburn auto loans team outlines what you need to do to rebuild your credit score after bankruptcy so you can qualify for a car loan.

Bankruptcy and auto loans

Once your bankruptcy has been discharged and you’re in control of your own money again, you can begin rebuilding your credit score.

It will take a while and will require some work but anything is possible when you put your mind to it!

Open a new bank account

If you still have your old bank account and want to continue using that, you can. Otherwise, open a new bank account. Open a regular savings account too while you’re there.

You’ll just need the ability to make automatic payments to begin with so don’t need anything fancy.

If the bank also offers a credit card, get that too. If you don’t qualify for a standard card, use a secured credit card instead.

Set up automatic payments for all outgoings

If you’re opening a new account, set up automatic payments from this account for all your outgoings. Also arrange it so you’re paid into this account so you’ll have the money to pay.

Building a solid payment history is pivotal in rebuilding credit. It’s also the first thing a lender will check when applying for a Port Colburn auto loan.

Make sure all outgoings are covered by automatic payments. If any aren’t, set a calendar reminder on your phone or computer so you don’t forget.

Use your credit card regularly

When we say use your credit card regularly, we mean for everyday expenses. Buy gas, buy groceries, buy whatever you would normally buy. Don’t spend what you wouldn’t normally spend.

Make sure the minimum payment is set up using automatic payments and settle the card in full each month.

Settling means you’re not carrying debt from month to month or paying interest.

Once you have used that card for a while, get another or switch your secured credit card to a standard one. Keep using it, or both, cards for everyday purchases.

Building your credit score

If possible, have your mortgage or rent payments reported to the credit bureaus if they aren’t already. This is more relevant to renters as not all rental companies report payments.

Do the same for your phone contract, cable and utilities wherever possible. Some companies will automatically note payments while others will need asking.

The more entries you have going onto your credit report, the better. We’re looking to paint a picture of a well-rounded individual with everything under control.

Do this for between 6-18 months and you should have a decent credit score. It may not yet be where it once was but it should be many times better than when you started!

Contact Unique Chrysler for help, advice and competitive Port Colburn car finance and leasing.

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