How to Reinstate My Credit After Bankruptcy

Credit ratings take a major hit after a bankruptcy, and reinstating your credit or getting back on the right track requires quick action and better credit habits. There are numerous ways to reestablish your credit history after bankruptcy and build a good rating. The key is knowing where to look for credit and adopting habits that are sure to boost your low score.

Instructions

1

Use secured credit cards to help you bounce back and restore a low credit rating. Apply for a secured credit card and set up a savings account with your bank or another financial institution. Deposit the required amount into this account. The bank will issue a credit card with a limit that matches your security deposit.

2

Get an installment account. Diversifying and acquiring different types of credit helps you fix a low score after bankruptcy. Along with a secured credit card, look into other types of loans such as installment accounts. Visit a bad credit dealer to finance an automobile or use personal collateral and apply for a small bank loan.

3

Talk to your lawyer about excluding some of your debt from the bankruptcy. Before filing the bankruptcy with the courts, discuss retaining some of your creditors. You can exclude student loan lenders, mortgage lenders and auto loan lenders from the bankruptcy and continue making these payments as agreed. A good payment record with these creditors helps your credit score.

4

Fix credit habits. Reinstating or restoring credit is only the first step to a better score. Make timely payments to gradually improve your low score after a bankruptcy. Before applying for loans or financing items, review your finances to make sure you can afford the new debt. Lack of funds can result in late or skipped payments and a bad credit rating.