How to Re-Establish Credit After Bankruptcy

Reestablishing credit after bankruptcy is the key to repairing your damaged credit history. You can anticipate a drop in your FICO score after a proceeding. But low credit scores aren't permanent fixtures on your credit report. There are many ways to raise a low score and prove that you're capable of managing your money and debt after a bankruptcy. Although bankruptcies stay on your report for 10 years, a better credit score will prompt a lender to look past your mistakes and focus on your new credit score.

Instructions

1

Use a secured credit card to help your FICO score after a bankruptcy. Banks provide secured credit cards to people with a low credit score and no credit history. Submit an application and pay the required security deposit to begin re-establishing your credit.

2

Open an additional account to manage multiple debts. Acquiring one credit card may not be enough to quickly rebuild your credit. Visit your favorite department or retail store to see if you can get a high-rate charge account to help your credit rating.

3

Reaffirm your auto loan or apply for a new or used car loan. Having an auto loan on your report and paying this loan on time after your bankruptcy can help you acquire a better rating after filing. Talk to your lawyer about reaffirming your auto loan, wherein you're allowed to keep your car and continue making payments. If not, check into subprime auto loans.

4

Rebuild your credit with timely payments. Sign up for automated payments to guarantee that your creditors receive payments by the due date.

5

Manage your debt responsibly. Continuously carrying a balance on your credit cards can trigger debt problems. Keep your debts low by paying off new charges within a month.