Congratulations! You’ve successfully served your three year period of bankruptcy and have been discharged, so now what? You’ve unquestionably taken the appropriate measures to settle your financial issues by filing for bankruptcy, and all your debts are well behind you now. Keep in mind though, there’s still a lot of work involved to get your finances back in order. The main issue that discharged bankrupts confront is their ability to borrow money, and the reason for this is their poor credit rating.

For the past 3 years, you’ve had no debts to repay so your credit history has nothing to show with the exception of a bankruptcy mark next to your name. There’s been no activity on your credit report, so a blank page will make lending institutions hesitant in lending money to you purely because they can’t evaluate your repayment behaviours. Repairing your credit rating is the best way to get your finances back on track, and make your recovery process as seamless as possible.

The best ways to repair your credit report after discharge?

Given that lenders haven’t been able to ascertain your financial management skills for the past 3 years, you will want to begin showing healthy financial habits. Here’s a list of ways in which you can do this

1. Reliable employment

Acquiring consistent and ongoing employment is an excellent way to improve your financial security and show lenders that you have a regular income source. Reliable employment will allow you to increase your savings and strengthen your overall financial circumstances, leading to a better credit rating.

2. Increase your savings balance

Your savings account is an asset, so increasing your savings balance as time go on will display to lenders that you are financially responsible and are capable of making loan repayments. By putting money into a dedicated savings account every month, even a small amount, will improve your credit history.

3. Limit your credit applications

Each time you apply for a line of credit, it is marked on your credit report, so excessive credit applications can adversely impact your credit rating. After being discharged, it’s critical that you are pragmatic and cautious about the kinds of credit you apply for to increase the likelihood of approval. It’s best to request just one line of credit at once, and remember that secured loans and options with a guarantor or joint accounts will increase the chances of approval.

4. Think about a term deposit

If you’ve had the opportunity to save money throughout your bankruptcy period, contemplate putting part of it into a term deposit account. Not only will you accrue interest and boost your overall financial situation, it will likewise show financial institutions that you are financially reliable. Therefore, your chances of obtaining a loan will be increased which leads to an improved credit rating.

5. Always make repayments on time

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

6. Don’t be afraid to talk to loan providers

If you wish to request a line of credit after your bankruptcy period, or explore what types of options are available to you, don’t be afraid to speak with lenders or other financial institutions to review your circumstances. They are in the best position to advise of your eligibility, and provide suggestions on what options would work best for your individual circumstances.

Be careful with credit repair agencies

There are a number of credit repair companies that will make all kinds of promises to improve your credit report. Even though some of them are reliable in challenging any incorrect listings on your credit record, 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 firms since they “may not always be able to do what they claim they can”.

If you’re in need of any guidance in repairing your credit history, or have any queries relating to your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Speak to Bankruptcy Experts Dandenong on 1300 795 575, or alternatively you can visit our website for more information: Bankruptcy Dandenong

Effective ways to Rebuild Your Credit Rating After Bankruptcy?