How to Reestablish Credit After Bankruptcy

After a bankruptcy, the thought of applying for a credit card may be the last thing on your mind. And oftentimes, it's nearly impossible to get credit after such a serious mishap. But a bankruptcy doesn't signal the end of your credit history. True, your credit score will drop. But there are ways to reestablish your credit and acquire a high rating.

Instructions

1

Consider a secured credit card. Apply for one immediately after a discharge. The quicker you act, the sooner you can start reestablishing your credit history. Inquire about secured cards from your bank or credit union. Be prepared to pay a security deposit.

2

Begin paying your bills on time. Acquiring a credit card is just the first step. To reestablish your credit and achieve a high score, pay your new credit card statement on time -- every month.

3

Minimize credit card use. Charge only a small amount each month, and then use cash for your remaining purchases. Completely pay off credit card balances at the end of the month to avoid incurring debt.

4

Consider piggyback credit. Adding your name to someone's credit account is one of the fastest ways to increase a low score after a bankruptcy. You become a co-debtor and the credit account appears on your credit report. For this to work, the other person must have good credit.

5

Check your credit report. Reporting errors can slow your recovery efforts. Order a copy of your credit report at least once a year to check for mistakes or unknown accounts.

6

Be patient. Reestablishing credit after bankruptcy is a process, and you shouldn't expect overnight miracles. Continue to pay your creditors on time and practice smarter credit habits, and you'll gradually add points to your credit score