The fear of many individuals and families, who are considering filing for bankruptcy, is that doing so could bring financial ruin on those affected for years, if not decades. While bankruptcy is a serious declaration that comes with heavy consequences, it exists because it is the best option for some people. Even if you do file bankruptcy, your credit score is not insurmountable. It will be damaged by your bankruptcy, but you can still go about rebuilding both your credit score and your financial reputation.
Step 1
Pay all of your bills on time. This includes everything from mortgages and student loans to the electricity bill.
Step 2
Apply for and set up a secured credit card. This will cost money to maintain, but it will also help you build back a positive credit profile. Make sure you keep the balance at zero and pay it off monthly. Over time, request limit increases. This will show your financial maturity.
Step 3
Obtain new credit scores every few months. You need to make sure new negative strikes are not showing up and that all your information is being reported accurately. This will also help you monitor your progress.
Step 4
Open a savings account and add money to it every month, even if the amounts are marginal. This will show that you are saving gradually.
Step 5
Keep your credit requests minimal. Although you need credit to build credit, you don't want too have multiple accounts floating out there. It will make you a higher financial risk.
Step 6
Visit with a credit counselor for advice on how you can improve your credit score. In addition to these guidelines, there also may be options specific to your circumstances that can help you improve your credit score, rebound from bankruptcy and start seeing lower interest rates on offered credit.
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