Filing for bankruptcy can feel like the end of the world, but it doesn’t have to be. With a 670 credit score, you’re already in the "fair" range—which means you’re on the right track. However, rebuilding after bankruptcy requires strategy, patience, and a deep understanding of modern financial challenges.
A 670 FICO score sits just below the "good" credit tier (670-739). While it’s not perfect, it’s a solid foundation for rebuilding. Lenders see this score as a sign that you’re managing credit responsibly post-bankruptcy. But in today’s economy—where inflation, rising interest rates, and tighter lending standards dominate—every point counts.
Bankruptcy stays on your credit report for 7-10 years, but its impact lessens over time. Here’s what you’re up against:
- Higher interest rates on loans and credit cards
- Limited credit options (many lenders avoid recent bankruptcy filers)
- Stigma in rental and job applications (some landlords/employers check credit)
Errors can drag your score down. Use AnnualCreditReport.com to pull free reports from all three bureaus (Equifax, Experian, TransUnion). Dispute inaccuracies—especially if old debts reappear post-bankruptcy.
Set calendar reminders to check reports every 4 months (rotating between bureaus).
Since traditional credit cards may be off-limits, try:
- Secured credit cards (require a cash deposit as collateral)
- Credit-builder loans (e.g., Self or Credit Strong)
- Authorized user status (if a trusted friend/family member adds you)
Warning: Avoid "credit repair" scams promising instant fixes.
Even with a 670 score, high balances hurt. If you get a $500 limit card, never spend more than $150 (30%). Better yet, aim for under 10% for optimal scoring.
Having only credit cards? Add an installment loan (e.g., a small personal loan) to show you can handle different credit types.
One late payment can tank your score. Use apps like Prism or AutoPay to avoid mistakes.
With prices soaring, sticking to a post-bankruptcy budget is harder. Try:
- The 50/30/20 rule: 50% needs, 30% wants, 20% savings/debt repayment
- Cash-back apps (e.g., Rakuten) to stretch dollars further
The Fed’s hikes mean loans cost more. If you need a car loan or mortgage:
- Shop rates aggressively (compare at least 3 lenders)
- Consider credit unions (often more forgiving for rebuilt credit)
Side hustles (Uber, Fiverr) can boost income to pay down debt faster. Just track earnings—you’ll need them for loan applications.
Bankruptcy can feel like failure, but it’s a financial reset, not a life sentence.
- Join support groups (e.g., Debtors Anonymous)
- Celebrate small wins (e.g., a 20-point score increase)
- Visualize long-term goals (homeownership, travel, etc.)
Rebuilding to 700+ is possible. Stay disciplined, leverage fintech tools, and remember: every financial comeback story starts with one smart move.
Copyright Statement:
Author: Credit Boost
Link: https://creditboost.github.io/blog/670-credit-score-how-to-rebuild-after-bankruptcy-2808.htm
Source: Credit Boost
The copyright of this article belongs to the author. Reproduction is not allowed without permission.