Congratulations! You’ve successfully fulfilled your three year period of bankruptcy and have been discharged, so now what? You’ve obviously taken the most appropriate measures to resolve your financial dilemmas by filing for bankruptcy, and all your debts are well behind you now. Keep in mind though, there’s still plenty of work involved to get your finances back in order. The greatest issue that discharged bankrupts experience is their ability to borrow money, and the reason for this is their bad credit rating.

For the last three years, you’ve had no debts to pay off so your credit history has nothing to show besides a bankruptcy mark against your name. There’s been no activity on your credit report, so a blank page will make financial institutions reluctant in lending money to you only because they can’t inspect your repayment habits. Rebuilding your credit history is the best way to get your finances back in order, and make your recovery process as smooth as possible.

The best ways to rebuild your credit report after discharge?

Since lending institutions haven’t had the ability to evaluate your financial management skills for the last three years, you will want to begin exhibiting healthy financial habits. Here’s a list of ways in which you can do this

  1. Regular employment

Attaining regular and ongoing employment is an excellent way to improve your financial security and show banks and financial institutions that you have a regular income source. Stable employment will allow you to increase your savings and bolster your overall financial circumstances, leading to a better credit rating.

  1. Increase your savings balance

Your savings account is an asset, so increasing your savings balance in time will illustrate to lending institutions that you are financially sensible and are capable of making loan repayments. By putting money into a dedicated savings account each month, even a small amount, will improve your credit history.

  1. Limit your credit applications

Every time you request a line of credit, it is marked on your credit history, so excessive credit applications can adversely impact your credit history. After being discharged, it’s vital that you are sensible and vigilant about the types of credit you apply for to increase your chances of approval. It’s best to apply for a single line of credit at once, and always remember that secured loans and options with a guarantor or joint accounts will increase the likelihood of approval.

  1. Think about a term deposit

If you’ve been able to save money during the course of your bankruptcy period, think about putting some of it into a term deposit account. Not only will you accumulate interest and boost your overall financial circumstances, it will likewise show lenders that you are financially reliable. Therefore, your chances of acquiring a loan will be increased which leads to an improved credit rating.

  1. 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. Regardless of whether it’s your electricity, rent, or even a secured loan in your name, making these repayments on time will unquestionably improve your credit report and increase the confidence that lending institutions have in your financial management capabilities.

  1. Don’t be afraid to speak to financial institutions

If you intend to request a line of credit after your bankruptcy period, or explore what types of options are available to you, don’t hesitate to talk to lenders or other financial institutions to discuss your circumstances. They are in the best position to advise of your eligibility, and offer advice on what options would work best for your personal circumstances.

Beware of credit repair firms

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

If you need any expertise in rebuilding your credit report, or have any queries regarding your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Phone Bankruptcy Experts Brisbane on 1300 795 575, or alternatively you can visit our website for more information: