Congratulations! You’ve successfully fulfilled your three year period of bankruptcy and have been discharged, so now what? You’ve unquestionably taken the most suitable actions to address your financial dilemmas by declaring bankruptcy, and all your debts are well behind you now. However, there’s still a considerable amount of work involved to get your finances back on track. The greatest issue that discharged bankrupts face is their capability to borrow money, and the reason for this is their bad credit rating.

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For the previous 3 years, you’ve had no debts to repay so your credit history has nothing to show except for a bankruptcy mark against your name. There’s been no movement on your credit report, so an empty page will make banks and lenders reluctant in lending money to you solely because they can’t ascertain your repayment behaviours. Rebuilding your credit history is the best way to get your finances back on track, and make your recovery process as smooth as possible.

How to rebuild your credit report after discharge?

Due to the fact that financial institutions haven’t had the ability to evaluate your financial management skills for the previous 3 years, you will want to begin showing healthy financial habits. Here’s a list of ways in which you can do this

  1. Steady employment

Acquiring regular and ongoing employment is a terrific way to increase your financial security and show banks and financial institutions that you have a regular income source. Regular employment will enable you to increase your savings and improve your overall financial situation, leading to a better credit rating.

  1. Increase your savings balance

Your savings account is an asset, so increasing your savings balance as time go on 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 every month, even a small amount, will improve your credit rating.

  1. Limit your credit applications

Whenever you make an application for a line of credit, it is recorded on your credit report, so too many credit applications can negatively affect your credit rating. After being discharged, it’s vital that you are practical and vigilant about the kinds of credit you apply for to increase your chances of approval. It’s best to make an application for a single line of credit at a time, and 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 managed to save money during your bankruptcy period, consider putting some of it into a term deposit account. Not only will you accrue interest and improve your overall financial position, it will also show lenders that you are financially dependable. As a result, the likelihood 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 type of repayment on time. Regardless if it’s your electricity, rent, or even a secured loan in your name, making these repayments on time will most definitely improve your credit rating and increase the confidence that loan providers have in your financial management skills.

  1. Don’t hesitate to talk to financial institutions

If you wish to make an application for a line of credit after your bankruptcy period, or identify 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 give insight on what options would work best for your individual circumstances.

Be careful with credit repair agencies

There are numerous credit repair agencies that will make all sorts of promises to improve your credit record. Even though some 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 firms since they “may not always be able to do what they claim they can”.

If you need any advice in rebuilding your credit report, or have any inquiries about your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Get in contact with Bankruptcy Experts Tweed Coast on 1300 795 575, or alternatively you can visit our website for additional information: Bankruptcy Tweedcoast