How to Easily Rebuild and Repair Your Credit After Bankruptcy, Foreclosure, or Repossession

Most credit repair scams and schemes and just a worthless waste of money and don’t help you to legally rebuild your credit.

Here is a simple process I have advised people to use for years that does the trick for rebuilding and restoring your credit from any credit disaster.

This isn’t some crafty or quasi-legal technique. This is just using the credit reporting system wisely and to your advantage to rebuild your credit in a relatively short period of time.

Step 1 – Get a Copy of Your Consolidated Credit Report

Get a copy of your consolidated credit report. It is the type of report that includes all the major three credit reports in one report. For example, I only use a consolidated credit report to check my credit, and the link will take you to the credit report I use.

Your credit report is like a report card of sorts. You need to look it over and make sure that all the accounts listed on your credit report are yours. If they were not, you need to write to the credit bureaus reporting them and tell them they are not your and ask to have them removed. It’s like you looked at your school report card, and it listed classes you did not take. They should not be there.

If the rest of the accounts belonged to you, but you had a bad track record with them, that information stays on the report just as if you got a D in a class you took. Just because you got a bad grade does not mean the class is removed from a report card.

After seven years, the bad credit items will no longer be reported on your credit report. However, when you look at your consolidated credit report, if any of them list negative information longer than the seven-year period, then when you write to the credit bureaus to point out any incorrect information, you can tell them about the old items.

Generally, the credit bureaus are good about automatically removing the old items.

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While you are at it, look for any delinquent accounts that may be younger than seven years old. If you have any, pay them off. The contact information for the creditor will be on your credit report.

Step 2 – Boosting Your Credit Score With Good Credit Using a Secured Card

Using the report card analogy, if you wanted to bring up your GPA, you would need to earn some better grades to do it. It is the same with your credit report. If you want to bring your score up, you need to start having new and good credit reported about you.

The best way to do this is to get and use a secured credit card. In fact, get two different ones. I put together a section of the site that lists reviews for secured cards.

The advantage of getting a secured card is that you will get the credit card and not get a rejection on your credit report that will further hurt your credit. Rejection can be easily spotted by looking at the inquiry section of your credit report and seeing there is no corresponding card opened. And with your current bad credit, you would get rejected if you applied for an unsecured card.

You will get the secured credit card on the first attempt because you need to put up a deposit with the bank that is equal to your credit limit. The deposit will earn you interest, and in the unfortunate event you were unable to pay your card and defaulted, the bank would use your deposit to pay the debt.

When looking for a secured card, you want one that will report to all three credit bureaus. This is key. We need your new good payment history reported.

When I say use the card, you do not need to balance from month to month. Just use the card for regular purchases and pay the card off immediately or at the end of the month.

It is also important to make sure your secured cards have a line of credit above $1,000. A lower credit line card will count much less towards boosting your credit score. To increase your line of credit, it may require you to put down an additional deposit.

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Also, if you get a secured card with a $300 limit, never have more than 35% of the limit on the card. Even though your initial limits may be low, you don’t want to max them out. You can always increase your limits by increasing your deposits. You can increase your credit limit by increasing your deposit with the card company.

I suggest getting more than one card so you can get as much good juice flowing to your credit report without having too many credit cards open. Of course, you could actually go with three if you wanted to, but no more than that.

Just make sure the card will report to the credit bureaus.

Step 3 – Enjoy Your New Legally Rebuilt Credit

If you follow these steps now in a year, you’ll feel better about yourself and have substantially better credit.

After following these steps, it will take a year or so to get you up to the awesome credit score you are looking for.

I would suggest you also keep tabs on your credit score using the free service from Credit Karma. It will let you know when your score rises along the way.

To keep your score growing, make all your future payments on time and avoid defaulting again.

Many people who have lived through a period of bad credit often credit shy, myself included. For them, the credit equals pain. So what they do is avoid getting any new credit. But this only prevents them from bringing up their grade point average.

This should do the trick for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

17 thoughts on “How to Easily Rebuild and Repair Your Credit After Bankruptcy, Foreclosure, or Repossession”

  1. I file for chapter 13 on Dec 2013. A creditor that was added to my Chapter 13 bankruptcy has been reporting to the Credit Bureaus. What can I do to stop this?


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