How to Fix Credit Rating After Bankruptcy

Applying for and managing credit helps you build a good credit score. But sometimes, consumers use credit irresponsibly and bad habits can bring on a bankruptcy. A bankruptcy can give you a fresh start, and oftentimes, you're no longer responsible for past debts. Recovering from a bankruptcy involves acquiring new lines of credit to help improve your low credit score. Regrettably, getting credit after bankruptcy is easier said than done.

Instructions

1

Save between $300 and $500 and use this money to apply for a secured credit card. Pick up an application from your bank or credit union for a secured credit card. Pay the required security deposit and application fee.

2

Pay any loans not included in the bankruptcy. You have the option of excluding an auto loan, mortgage or student loan from a bankruptcy. Start anew and make these payments on time each month to begin restoring your credit after a bankruptcy. Consider automated monthly payments to avoid forgetting or missing a payment.

3

Learn how to manage debt better. Avoid repeating past mistakes by creating a monthly spending budget and allotting a certain amount for non-essentials such as recreation, entertainment and shopping. Stay in budget and only use a credit card if you have cash to pay off the charge.

4

Upgrade your car and get an auto loan to help improve your score. Auto loans are available to people with recent bankruptcies. Check around town and research bad credit auto dealership and lenders. Apply for a bad credit auto loan and maintain a good payment history to improve your credit rating.