Improving Your Credit After Bankruptcy

If you are going to rebuild your credit after filing for bankruptcy, you must understand the importance of how your FICO score is comprised.  For example, 35% of your FICO score is based upon your payment history.  30% is based upon amounts owed.  Thus, over 65% of your FICO score is all about what you owe and how you pay.  Thus, to make a significant improvement after bankruptcy, you should keep your balances low and make timely payments.  The length of credit accounts for 15% of your FICO score, 10% looks at new account activity and 10% is based upon the types of credit or the credit mix.

Concentrate on the part of your score that make up 65% by lowering your balances and by making timely payments.  Over time, you will see your score increase, your opportunities increase and the cost of the credit decrease.  That is how you start to rebuilding after filing either Chapter 7 or Chapter 13 bankruptcy.