Congratulations! You’ve successfully fulfilled your three year period of bankruptcy and have been discharged, so now what? You’ve definitely taken the right measures to resolve your financial issues by declaring bankruptcy, and all your debts are well behind you now. However, there’s still a good deal of work involved to get your finances back in order. The main issue that discharged bankrupts face is their capability to borrow money, and the main reason for this is their bad credit rating.

For the last 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 activity on your credit report, so a blank page will make lenders reluctant in lending money to you purely 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.

Ways to repair your credit report after discharge?

Considering that lending institutions haven’t been able to ascertain your financial management skills for the past three years, you need to start illustrating healthy financial habits. Here’s a list of ways in which you can do this

  1. Stable employment

Achieving reliable and ongoing employment is an effective way to increase your financial security and show banks and financial institutions that you have a regular income stream. Stable employment will allow you to increase your savings and bolster your overall financial condition, resulting in a better credit rating.

  1. Increase your savings balance

Your savings account is an asset, so increasing your savings balance in time will demonstrate to lending institutions that you are financially responsible 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 rating.

  1. Limit your credit applications

Every time you make an application for a line of credit, it is marked on your credit history, so too many credit applications can adversely impact your credit history. After being discharged, it’s pivotal that you are realistic and vigilant about the kinds of credit you apply for to increase the likelihood of approval. It’s best to make an application for a single line of credit at once, and 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 had the opportunity to save money throughout your bankruptcy period, think about investing part of it into a term deposit account. Not only will you accrue interest and enhance your overall financial situation, it will likewise show lenders that you are financially reliable. Consequently, your chances of securing 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. 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 financial institutions have in your financial management capabilities.

  1. Don’t hesitate to speak to lending institutions

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 be reluctant to speak to lenders or other financial institutions to review your circumstances. They are in the best position to advise of your eligibility, and give insight on what options would work best for your personal situation.

Beware of credit repair agencies

There are a number of credit repair companies that will make all sorts of promises to improve your credit record. Whilst many of them are helpful in challenging 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 agencies because they “may not always be able to do what they claim they can”.

If you’re in need of any expertise in rebuilding your credit report, or have any concerns with respect to your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Reach out to Bankruptcy Experts Rockingham on 1300 795 575, or alternatively you can visit our website for more information: