Bankruptcy can feel like the end of the road, rather than a chance for a new beginning. If you can embrace this way of looking at it, there is a very good chance you can rebuild your credit after filing bankruptcy. You can come back with a financial strength you never had before.
Apply for credit using new avenues. A lot of what you can do to build credit after bankruptcy will ring familiar to you. It is, in fact, quite similar to building credit for the very first time. This may mean looking to avenues such as department stores in order to apply for credit. Gas cards are another good option. These credit cards are typically high interest rate cards, but the lending institutions behind the cards are usually more lenient on the loan requirements.
Use credit cards sparingly. Once you've managed to procure a card, use it sparingly. Don't fall into the same traps that forced you to file for bankruptcy in the first place. At the same time, you should use the card. Just having it, sitting there in your purse or wallet, won't do anything for your credit report. But with some sparing use and some reasonable transactions, you can illustrate a new restraint in your spending.
Pay balances off quickly. When you use the card, take note of what your spent and make sure you have the funds to pay the balance in full at the end of the month. Do this every month and do it on time. Missing the due date can add excess interest charges and will be looked upon as a further black mark on your credit report.
Wait it out. A bankruptcy is removed from your credit history in seven years. This may seem like a long time to wait, but you can take the time to completely retrain yourself on using credit responsibly. Once you've gone largely without it for that long, you won't feel the impulse to abuse it when you have the privilege once again.
Tips & Warnings
- Don't fall behind again in credit payments. You don't want creditors to think you haven't learned your lesson.