The best ways to Repair Your Credit Rating After Bankruptcy?

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Congratulations! You’ve successfully served your three year period of bankruptcy and have been discharged, so now what? You’ve unquestionably taken the most suitable actions to settle your financial dilemmas by filing for bankruptcy, and all your debts are well behind you now. However, there’s still a good deal of work required to get your finances back in order. The main issue that discharged bankrupts confront is their opportunity to borrow money, and the main reason for this is their bad credit rating.

For the past 3 years, you’ve had no debts to pay off so your credit history has nothing to show other than a bankruptcy mark against your name. There’s been no movement on your credit report, so an empty page will make lenders reluctant in lending money to you purely because they can’t analyse your repayment habits. Repairing your credit history is the best way to get your finances back on the right track, and make your recovery process as smooth as possible.

How to repair your credit report after discharge?

Given that financial institutions haven’t had the ability to examine your financial management skills for the previous 3 years, you will need to start exhibiting healthy financial habits. Here’s a list of ways in which you can do this

  1. Regular employment

Acquiring stable and ongoing employment is a great way to boost your financial security and display to loan providers that you have a regular income source. Steady employment will enable you to increase your savings and improve your overall financial condition, resulting in a better credit rating.

  1. Increase your savings balance

Your savings account is an asset, so increasing your savings balance with time will display to financial institutions that you are financially responsible and are capable of making loan repayments. By transferring money into a dedicated savings account each month, even a small amount, will improve your credit rating.

  1. Limit your credit applications

Every time you make an application for a line of credit, it is documented on your credit report, so too many credit applications can negatively impact your credit rating. After being discharged, it’s imperative that you are practical and mindful about the types of credit you apply for to increase the likelihood of approval. It’s best to make an application for a single line of credit at a time, and keep in mind that secured loans and options with a guarantor or joint accounts will increase the likelihood of approval.

  1. Consider a term deposit

If you’ve managed to save money throughout your bankruptcy period, consider putting some of it into a term deposit account. Not only will you accrue interest and strengthen your overall financial circumstances, it will also show loan providers that you are financially dependable. Therefore, the likelihood of obtaining a loan will be increased which leads to an improved credit rating.

  1. Always make repayments on time

One of the most important things you can do as a discharged bankrupt is to make any type of repayment on time. Whether or not it’s your rent, electricity, or even a secured loan in your name, making these repayments on time will most certainly improve your credit rating and increase the confidence that financial institutions have in your financial management abilities.

  1. Don’t be afraid to speak with loan providers

If you intend to apply for a line of credit after your bankruptcy period, or discover what types of options are available to you, don’t be reluctant to talk with banks or other financial institutions to review your circumstances. They are in the best position to advise of your eligibility, and offer recommendations on what options would work best for your personal situation.

Be cautious of credit repair companies

There are plenty of credit repair companies that will make all kinds of promises to improve your credit record. Even though some of them are helpful in disbuting any incorrect listings on your credit history, they may not be able to do anything else to improve your credit record. The Government’s MoneySmart website ( advises discharged bankrupts to be “very careful” of these companies due to the fact that they “may not always be able to do what they claim they can”.

If you need any advice in repairing your credit report, or have any questions with respect to your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Get in touch with Bankruptcy Experts Penrith on 1300 795 575, or alternatively you can visit our website for additional information:


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