How to Repair Bankruptcy

The effects of a bankruptcy can destroy your credit rating. Bankruptcies stay on your credit file for 10 years, and once the bureaus delete this information, creditors reviewing your credit report will not be aware of your past mistake. However, you don't have to wait 10 years to clean up the effects of a bankruptcy. There are ways to improve your credit score in the meantime.

Instructions

1

Consider not including all your debts in the bankruptcy. If you haven't filed a bankruptcy yet, you may want to keep some debts and continue paying these creditors as agreed to help repair your FICO score.

2

Add two or more credit accounts. If you've already filed a bankruptcy and included all your credit accounts, start repairing a bankruptcy by applying for new credit accounts, such as a secured credit card through your bank or credit union. Pay the required security deposit to acquire the card. Also, talk to your bank about unsecured bad-credit credit cards. These have higher interest rates, but they'll help restore credit after a bankruptcy.

3

Establish a payment history to improve your credit score. Whether you've retained a few debts from before your bankruptcy or applied for new accounts after your bankruptcy, be sure to pay these creditors each month on time. Timely payments are key to repairing the effects of a bankruptcy. Pay early or pay online to avoid being late.

4

Eliminate debt at the end of each month. Pay off new credit card charges each month to build and maintain a high credit score after a bankruptcy. Plus, eliminating new charges each month alleviates debt problems, making it less likely you'll file bankruptcy again.