How to Build My Credit with Credit Cards after Bankruptcy

Credit ratings affect an individual's ability to purchase a vehicle, secure housing and get a job. After bankruptcy, it's important to work hard to improve your credit score. Using secured credit cards to show credit bureaus your ability to make timely payments and manage credit can improve credit scores.

Instructions

1

Apply for a secured credit card. These cards typically have low limits (sometimes only $400 or $500) and are secured by a deposit. However, over time, your limit will be increased and the creditor may offer you a card that doesn't require a deposit.

2

Pay your monthly credit card bill on time. Paying your credit card bill on time has a large impact on your credit rating, according to MSN Money. Consider setting up automatic payments from your checking account to ensure payments are made on time every month. This will prevent late payments, from damaging your credit rating.

3

Keep your credit card balance low. When using a secured credit card, use it solely to build credit. Keep your credit card balance to 35 percent or less of the total available balance. On a card with a $400 limit, for example, keep your balance to $140 or less. This will help raise your credit score and get you a credit limit increase quicker.

4

Avoid closing credit card accounts. If you have more then one credit card, don't close accounts (even if you aren't using them any longer). Keeping these accounts open, according to Entrepreneur Magazine, will increase your credit rating.