Bankruptcy is always viewed as a last resort option because of the damage it does to a credit report. It is not impossible to fix your credit after bankruptcy. It can be done, but it will take some work and a few years to rebuild the foundation of your credit after bankruptcy. It is a good idea to wait a few months after filing for bankruptcy before trying to apply for new credit accounts.
Step 1
Apply for a secured credit card. A secured credit card is different from an unsecured credit card or typical credit card. With a secured card, you send the issuing bank a deposit and they send you a card with a credit limit for that deposit amount. Usually after two years, the deposit is refunded and the card becomes an unsecured credit card. This type of card secures your credit limit should you default. It is a good way to rebuild your credit and prove to banks that you can be trusted with credit again.
Step 2
Apply for a store credit card. Credit cards issued by retail stores are usually easier to qualify for because of the fact you can only spend money at one store. Having a retail card for a few years is a good way to prove your credit-worthiness, and adds an account on your credit report that is in good standing.
Step 3
Apply for a small personal loan or car loan. Many banks offer a program designed to help people rebuild their credit after bankruptcy. The bank will issue you a small personal installment loan that you can pay back in about a year. The loan is usually for $500. This is a great way to add some variety to your credit report as your credit score factors in the types of credit you have. An installment loan has a better credit quality than a credit card.
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