How to Start Repairing Credit After Bankruptcy

Bankruptcy is a legal outlet for consumers who get in over their head with debt. If you filed for bankruptcy, a lower credit score is the price you pay for getting free of your debt. It takes up to 10 years to completely clean up your credit report, but you can start repairing credit soon after bankruptcy. It takes determination and self-control so you don't fall back into bad financial habits that hurt your credit in the first place.

Instructions

1

Keep at least one credit card out of the bankruptcy filing so you can maintain the accounts and the history associated with them. You can make arrangements with some of your creditors to pay off the debt prior to the bankruptcy proceeding or agree to reaffirm the card balance and sign a new agreement after the bankruptcy filing. Keeping the accounts -- and adhering to the new agreements -- can result in an improved credit rating.

2

Open a new credit card. It may be difficult to get approved for a regular credit card immediately following a bankruptcy filing; however, you may be able to get a secured credit card or a low-limit card to start building up a new credit history. Gas station and department store credit cards also may be options. Use the cards wisely and make payments on time to establish good credit.

3

Make your payments responsibly. Once the bankruptcy filing is completed, make all payments -- loans, credit cards and other bills -- on time from that point forth. Do not deface the clean slate provided by bankruptcy by late payments, or you will not be successful in repairing credit after bankruptcy.