In Need of a Fresh Start?
At Preferred Credit Union, we believe that there is life after bankruptcy, and that even though no one wants to go through it, there are ways to re-establish your credit once your bankruptcy is discharged.
As you begin your new financial life after the bankruptcy is discharged, use these simple pointers:
Rebuilding your credit takes time. There are no easy or quick solutions.
Before borrowing again, talk with a trusted financial counselor about any loan you are considering. Make sure it’s really the best option for you.
Managing credit responsibly is an important part of rebuilding your credit score. Never use more than 30% of a credit card’s limit.
Be diligent with making payments on time to help rebuild your credit.
Installment loans (ex. car loan) are also an important part of rebuilding your credit. An installment loan is repaid overtime with a set number of payments. If you would normally use a credit card for unforeseen repairs or emergencies (ex. car repairs), consider talking to your credit union about getting an installment loan.
Try to borrow from traditional borrowing sources first (ex. credit union). Borrowing from payday companies, high-risk lenders (finance companies), or online lending sources can hurt your score and cost more money in interest and fees.
Get approved for a new credit card (no more than two), but never use more than 30% of its limit. This applies to credit cards, not installment loans.
Services Offered Prior to Bankruptcy Discharge*
- Credit counseling by a certified financial counselor
- Preferred Advantage Checking Account
- Free Visa Debit Card
- Pre-approval for a Post-Bankruptcy loan with a special rate
Services Offered After Bankruptcy Discharge*
- Credit counseling by a certified financial counselor
- Preferred Advantage Checking Account
- Free Visa Debit Card
- Post-Bankruptcy loan with a special rate
- As your credit score improves over time, your rate may be adjusted once during the life of the Post-Bankruptcy loan
