Bankruptcy lawyers in Massachusetts often get asked how to rebuild credit after bankruptcy. We have pointed to numerous ways in the past, and on our website there is a section on Life After Massachusetts Bankruptcy. One way to jump start enhancing your score is to find a helpful bank or credit union; one that will give you a credit card. CreditCardConnection.org seems to have attracted a lot of attention. Essentially, they find a local credit union for you. These are not commercial banks, but nonprofit membership organizations.
When I entered our office zip code, it found two “featured” and numerous other credit unions with offices within 5 miles of Six Beacon Street, Boston. With some types of accounts at the credit unions, you give them a deposit of money and they give you a credit card, not a debit card, and allow you to use the credit card up to the limit of the dollars you have deposited. Each month they report to the credit agencies, Experian, Transunion and Equifax, that you are up to date on your payments. This is the opposite of debit cards, where the process is the same; however, the banks do not report your positive credit history to the credit agencies.
As outlined on our website page entitled Life After Massachusetts Bankruptcy, 35% of your FICO score is related to payment history; 30% is related to the balance owed relative to the credit allowed; 15% is your actual history, its duration and therefore reliability; 10% is related to the type of credit, including secured (mortgages and car loans) and unsecured (credit card); and, 10% is related to recent credit history including inquiries, and new accounts.