Getting credit after bankruptcy may seem impossible, but most people can start rebuilding their credit right after filing. While you may not qualify for the most favorable interest rates or fees, you can still start, step-by-step, to regain lenders' confidence.
Step 1
Get a new credit card and use it. This is the easiest way to rebuild credit. Don't max out the card and always make more than the minimum payments, so lenders can see you know how to handle credit. You might have to apply for a secured card at first. Credit.com, notes that secured cards can sometimes be converted to unsecured cards if you keep up with your payments for a specified time.
Step 2
Apply for a store or gas credit card. These are usually easy to obtain but come with high interest rates. Pay the bill in full when it comes. That way you're helping rebuild your credit without accruing new debt.
Step 3
Pay your bills on time. Late bills can result in your account being sent to a collection agency, which will, in turn, report your activities to the credit bureau. This counts as a mark against you and is especially damaging right after bankruptcy, when you're trying to rebuild your credit.
Step 4
Apply for a loan. Auto loans might be a good option after bankruptcy, although chances are the interest rates will be high. Don't take loans you don't need or can't repay, however. You might try applying for a car loan through a credit union, rather than a bank, as credit unions are sometimes more flexible in their requirements.
Step 5
Get a new cell phone. Anything that requires a contract and a credit check is likely to be reported to the credit bureau and will help you rebuild your credit. If you're having trouble getting a new contract because of the bankruptcy, ask the company about getting a co-signer or putting down a depositing.
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