Q: What is the best course of action, after successfully completing a bankruptcy, to begin rebuilding/re-establishing credit?
A: Pay your bills on time.
Seriously, it’s really that simple. The best way to improve your credit is to pay your bills on time all the time. Time will be your greatest friend.
As you may already know, a bankruptcy can stay in your credit files for 10 years. But, every year you move away from the bankruptcy, it has less impact on your credit scores.
Recent delinquency information has a greater impact on your scores. So, a 30-day late payment can ding your credit more than a bankruptcy that may be five or six years old.
Additionally, now that you have wiped away some debts, be sure you don’t pile up the debt again. The second category that impacts your scores is the amount of debt you have. And, despite your bankruptcy, you still will be able to eventually get credit because creditors know you can’t file for bankruptcy for another 8 years under Chapter 7.
So, in time, your credit scores will increase if you pay your bills on time and keep your debt level down.