Congratulations! You’ve successfully fulfilled your 3 year period of bankruptcy and have been discharged, so now what? You’ve undoubtedly taken the appropriate measures to address your financial difficulties by filing for bankruptcy, and all your debts are well behind you now. Having said this, there’s still a good deal of work required to get your finances back in order. The most challenging issue that discharged bankrupts face is their ability to borrow money, and the reason for this is their bad credit rating.

For the previous three years, you’ve had no debts to repay so your credit history has nothing to show with the exception of a bankruptcy mark against your name. There’s been no movement on your credit report, so an empty page will make lending institutions reluctant in lending money to you simply because they can’t analyse your repayment behaviours. Repairing your credit history is the best way to get your finances back on the right track, and make your recovery process as seamless as possible.

The best ways to rebuild your credit report after discharge?

Due to the fact that lending institutions haven’t had the ability to ascertain your financial management skills for the past three years, you will need to start showing healthy financial habits. Here’s a list of ways in which you can do this

1. Regular employment

Acquiring regular and ongoing employment is a terrific way to increase your financial security and display to banks and financial institutions that you have a regular stream of income. Reliable employment will enable you to increase your savings and enhance 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 gradually will illustrate to lenders that you are financially dependable 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 rating.

3. Limit your credit applications

Every time you apply for a line of credit, it is marked on your credit history, so excessive credit applications can adversely affect your credit history. After being discharged, it’s integral that you are practical and vigilant about the types of credit you apply for to increase your chances of approval. It’s best to request only one line of credit at once, and bear in mind that secured loans and options with a guarantor or joint accounts will increase the likelihood of approval.

4.Consider a term deposit

If you’ve managed to save money throughout your bankruptcy period, contemplate investing part of it into a term deposit account. Not only will you accumulate interest and boost your overall financial position, it will additionally show financial institutions that you are financially sensible. Therefore, your chances of securing 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. Regardless of whether it’s your rent, electricity, or even a secured loan in your name, making these repayments on time will definitely improve your credit report and increase the confidence that financial institutions have in your financial management capabilities.

6. Don’t be afraid to speak to lenders

If you want to apply for a line of credit after your bankruptcy period, or uncover what types of options are available to you, don’t hesitate to talk to banks or other financial institutions to review your circumstances. They are in the best position to advise of your eligibility, and offer recommendations on what options would work best for your individual situation.

Beware of credit repair agencies

There are a lot of credit repair agencies that will make all sorts of promises to improve your credit report. While some of them are useful in disbuting any incorrect listings on your credit history, 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 firms since they “may not always be able to do what they claim they can”.

If you’re in need of any expertise in repairing your credit report, or have any questions about your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Speak to Bankruptcy Experts Rockhampton on 1300 795 575, or alternatively you can visit our website for additional information: Bankruptcy Rockingham