Congratulations! You’ve successfully fulfilled your three year period of bankruptcy and have been discharged, so what now? You’ve definitely taken the most suitable steps to deal with your financial difficulties by filing for bankruptcy, and all your debts are well behind you now. Despite this, there’s still a good deal of work involved to get your finances back on track. The most prevalent issue that discharged bankrupts encounter is their capability to borrow money, and the reason for this is their poor credit rating.

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For the past three years, you’ve had no debts to pay back so your credit history has nothing to show other than a bankruptcy mark next to your name. There’s been no activity on your credit report, so a blank page will make banks and lenders reluctant in lending money to you solely because they can’t analyse 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.

Ways to rebuild your credit report after discharge?

Given that lending institutions haven’t been able to evaluate your financial management skills for the previous three years, you will want to start displaying healthy financial habits. Here’s a list of ways in which you can do this

  1. Stable employment

Attaining stable and ongoing employment is a fantastic way to enhance your financial security and demonstrate to lenders that you have a regular income source. Steady employment will allow you to increase your savings and strengthen 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 gradually will illustrate to financial institutions that you are financially dependable and are capable of making loan repayments. By putting money into a specialised savings account each month, even a small amount, will improve your credit history.

  1. Limit your credit applications

Each time you make an application for a line of credit, it is registered on your credit history, so too many credit applications can negatively affect your credit rating. After being discharged, it’s essential that you are pragmatic and cautious about the kinds of credit you apply for to increase your chances of approval. It’s best to make an application for only one line of credit at once, and always remember that secured loans and options with a guarantor or joint accounts will increase the probability of approval.

  1. Contemplate a term deposit

If you’ve been able to save money during your bankruptcy period, think about putting part of it into a term deposit account. Not only will you accrue interest and improve your overall financial circumstances, it will likewise show financial institutions that you are financially dependable. As a result, your chances of obtaining 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 evidently improve your credit report and increase the confidence that loan providers have in your financial management skills.

  1. Don’t be afraid to talk with financial institutions

If you want to make an application for a line of credit after your bankruptcy period, or discover what types of options are available to you, don’t be reluctant 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 suggestions on what options would work best for your personal situation.

Be mindful of credit repair firms

There are a number of credit repair agencies that will make all kinds of promises to improve your credit report. Even though many of them are effective in disbuting any incorrect listings on your credit record, they may not be able to do anything else to improve your credit report. The Government’s MoneySmart website ( advises discharged bankrupts to be “very careful” of these companies due to the fact that they “may not always be able to do what they claim they can”.

If you require any guidance in repairing your credit report, or have any inquiries regarding your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Call Bankruptcy Experts Gympie on 1300 795 575, or alternatively you can visit our website for more information: Insolvency Gympie