Congratulations! You’ve successfully served your three year period of bankruptcy and have been discharged, so now what? You’ve definitely taken the most appropriate actions to deal with your financial problems by filing for bankruptcy, and all your debts are well behind you now. Keep in mind though, there’s still a considerable amount of work required to get your finances back on track. The leading issue that discharged bankrupts face is their capability to borrow money, and the main reason for this is their poor credit rating.

For the past three years, you’ve had no debts to pay back so your credit history has nothing to show besides a bankruptcy mark against your name. There’s been no movement on your credit report, so an empty page will make financial institutions hesitant in lending money to you purely because they can’t analyse your repayment habits. Rebuilding your credit history is the best way to get your finances back on the right track, and make your recovery process as smooth as possible.

How you can repair your credit report after discharge?

Given that lenders haven’t had the ability to ascertain your financial management skills for the past 3 years, you will need to start exhibiting healthy financial habits. Here’s a list of ways in which you can do this

  1. Regular employment

Obtaining steady and ongoing employment is an effective way to enhance your financial security and show loan providers that you have a regular income stream. Stable employment will enable you to increase your savings and enhance 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 with time will display to lenders that you are financially reliable and are capable of making loan repayments. By transferring money into a specialised savings account every month, even a small amount, will improve your credit history.

  1. Limit your credit applications

Every time you apply for a line of credit, it is documented on your credit history, so lots of credit applications can adversely impact your credit history. After being discharged, it’s essential that you are pragmatic and careful about the types of credit you apply for to increase your chances of approval. It’s best to make an application for just one line of credit at a time, and keep in mind 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, consider putting some of it into a term deposit account. Not only will you accumulate interest and boost your overall financial situation, it will additionally show lenders that you are financially reliable. As a result, 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 type 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 certainly improve your credit history and increase the confidence that lending institutions have in your financial management skills.

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

If you want to request a line of credit after your bankruptcy period, or discover what types of options are available to you, don’t be afraid to speak to banks or other financial institutions to review your situation. They are in the best position to advise of your eligibility, and give information on what options would work best for your individual situation.

Be careful with credit repair firms

There are lots of credit repair firms that will make all sorts of promises to improve your credit record. 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 record. The Government’s MoneySmart website ( advises discharged bankrupts to be “very careful” of these companies because they “may not always be able to do what they claim they can”.

If you need any expertise in repairing your credit history, or have any inquiries regarding your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Reach out to Bankruptcy Experts Newcastle on 1300 795 575, or alternatively you can visit our website for more information: