Chapter 7 bankruptcy is a debt relief tool that many Americans turn to, particularly when medical and credit card debt becomes too overwhelming. Once you have been through bankruptcy, your credit score does take a hit. Credit scores do change, however. You can rebuild your credit.
According to U.S. News, you do not have to wait years before you handle another credit card.
How long does it take to rebuild your credit score?
Bankruptcy remains on your credit score for 10 years. This does not mean that your credit score cannot increase to its previous score in under 10 years, however. A few years is all you need to rebuild your score. To rebuild the score, you must have responsible credit card practices. 35% of your score is timely payments. While most people would not advise opening a credit card account directly after filing bankruptcy, if you have to open a credit card, you need to make payments on time.
What options for credit do you have?
Even with a bankruptcy on record, you will receive credit card offers. To begin rebuilding your credit, you may want to consider secured credit cards. With this type of credit, you do not borrow against a revolving, unsecured line. Instead, you deposit in advance. This deposit protects the issuer and provides you with the advantages of a credit card.
Another credit-building tool is to have an authorized user. In this instance, your credit card debt is not yours. You would be a user on someone else’s card. When you are an authorized user, you still have the benefits of a positive payment history.