But what can you do to improve your score before the seven years passes?
Even though it may seem impossible, you can actually begin to rebuild your credit almost immediately by working with companies that offer secured credit cards, small installment loans, or catalog shopping accounts (such as a Fingerhut Credit Account issued by WebBank). Many of these creditors specialize in working with those of us with less than perfect credit, offering special “fresh start” style programs designed to help rebuild credit. Once you’ve opened such an account, make sure you make your payments on-time, every time, and keep your credit utilization below 30%, and in a few years, your credit score could be as high as 700 or more.
While it may seem like it at the time, bankruptcy does not ruin have to ruin your credit forever, you just have to make sure that you use the “fresh start” that bankruptcy provides wisely by practicing good financial habits and working to rebuild your credit.
Here are a few options to consider when you’re ready to start rebuilding your credit, whether you have a bankruptcy or not: