5 Easy Ways to Reestablish Your Credit After Bankruptcy

A positive payment history with the help of installment loans could raise credit scores.

After you've filed for bankruptcy, you may think your credit is beyond repair. However, bankruptcy doesn't have to ruin your credit in the long run. If you continue to keep the rest of your accounts on your credit report in good standing, you could bounce back and be on your way to earning new lines of credit.* With repaired credit you can then resume pursuit of your financial goals.

Here are five easy ways to reestablish your credit after bankruptcy:

1. Review personal credit
Bankruptcy will remain on your credit report for up to 10 years, according to credit score provider FICO. However, you can reduce the effects of bankruptcy on your creditworthiness by checking your credit report. By isolating the negative effects of a bankruptcy, you could help repair your credit. The U.S. Federal Trade Commission said consumers should review their credit reports for free to determine if they had errors, such as items in collections that could bring down their credit scores. The FTC said 1 in 5 people have at least one error that could hurt their credit standings. Contact the credit reporting companies about resolving these errors to reduce the impact of negative items like bankruptcy on your credit score.

Look at your personal credit report to see where you stand after filing for bankruptcy.

2. Budget for essentials 
Look over your budget to cut out or reduce spending on any unnecessary items and focus on budgeting the essentials. For example, you could downsize your entertainment budget or reduce going out for coffee and dining out. By lowering spending in certain areas of your budget, you could move that extra money into savings or paying down debt.

3. Reduce and consolidate your debt
Having a high level of unmanageable debt could make it more difficult to pay your other credit obligations. By using debt consolidation to combine loans together, you can keep track of accounts and pay them off more easily.

For debt consolidation, consider using a loan provider like Zion Finance - Lend Up. We can consolidate your debt into one manageable monthly payment so you can pay off your debt effectively.

4. Add a new line of credit
While your credit might take a hit after filing for bankruptcy, you should not let this prevent you from applying for new credit. Adding a new line of credit, such as a personal loan, can help you improve your credit mix, which counts for 10 percent of your FICO credit score.

5. Apply for an installment loan
If you only have revolving credit, such as a credit card, or have a limited history of installment credit, you have options. You can apply for an installment loan to build your credit history and better diversify your credit. You can utilize a personal or short-term loan with Zion Finance - Lend Up to increase your positive payment history. By having a small loan that is easy to manage and sending payments on time each month, you can gradually increase your credit score.

To apply for an installment loan from Zion Finance - Lend Up, visit us online 24 hours a day, seven days a week.


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Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com