I filed bankruptcy. How can I rebuild my credit?

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Q. I filed bankruptcy, and it has been discharged. What’s the best way to establish credit again?
— Starting over

A. Congratulations on your discharge and for taking control of your finances.

You are now on the path to a fresh start.

The best way to start establishing credit is by applying for a secured credit card, said Karra Kingston, a bankruptcy attorney in Union City.

“A secured credit card is a card where you put money on and the lender gives you a line of credit to make purchases,” Kingston said. “Many people use a secured credit card to help them start rebuilding their life after bankruptcy.”

Another good way to start rebuilding credit is to ask someone good credit to add you as an authorized user on their credit card, she said.

“Credit card companies will report authorized users to the credit bureaus which can help rebuild credit,” she said.

It may take a little time, but you will establish your credit. Keep making timely payments and pay off anything you charge in full every month, she said.

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This story was originally published on Oct. 26, 2020.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.