Should I pay for someone to help me with credit repair post bankruptcy?

After successfully filing for bankruptcy, it is important for a person to begin rebuilding his or her credit. While it may be tempting to reach out to a credit repair services, often it can be just as beneficial, and less expensive, to rebuild one’s credit on one’s own.

Normally, it works wonders to sign up for a secured credit card and make payments on time.  Even with impaired credit after emerging from bankruptcy, a secured credit card is almost always obtainable.  The reason for that is that there is very little default risk for the creditor, i.e. they can take the cash security if you fail to pay.   For example, if you put down $1000 on a secured card, you can use the card for up to that $1000 limit.

After some months of maintaining on-time payments, your credit improves, especially with the bankruptcy having wiped out past balances and default activity receding further into the past for credit scoring purposes.  These improvements in credit often make obtaining a traditional, though low-limit, credit card possible rather quickly.   At this point the process is one of rinse and repeat.  In other words, if you continue making on-time payments with the traditional credit card, in time, your credit will improve even more, putting you in a position to get car loans, mortgages and other forms of credit on normal market terms.