How to Maximize Your Credit Score After Bankruptcy

After bankruptcy, many consumers aren't sure where to start rebuilding credit. A credit score affects your ability to secure an auto loan, housing and even a job. Focus on behaviors that can boost a credit score. For instance, making timely payments and managing credit card balances mean a significant difference, according to MSN Money.

Instructions

1

Consider applying for a secured credit card. After bankruptcy, qualifying for a traditional credit card can be tricky. A secured credit card, which requires putting down a deposit, allows borrowers to rebuild credit.

2

Pay debts on time. Timely payments have a large impact on your credit score, according to MSN Money. If this has been a challenge in the past, take a new approach. Set up an automatic payment schedule through your financial institution's online bill-payment program. The payments come directly out of your account at the same time each month, eliminating the possibility of late payments.

3

Manage credit card balances. According to MSN Money, having a credit card balance that exceeds 35 percent of the total available credit is bad news for the credit score. Use the credit card for the sole purpose of rebuilding credit. Pay it off every month, and with time your credit score will increase.

4

Keep credit cards open. As you build credit, avoid the urge to close old credit card accounts. Keeping these accounts open shows the credit bureaus you're responsible. As a result, your credit scores benefit, according to Entrepreneur Magazine.