It may sound counter-intuitive, however one of the best ways to rebuild credit following a bankruptcy is to open a new credit card account. It’s probably best to start off with a secured credit card since they are available to individuals with poor credit. These cards are typically offered in exchange for collateral, which is commonly a deposit paid to the credit card company. It makes sense to shop around before opening an account, as rates and fees may vary. It’s also important to make sure that the account will report to the major credit bureaus, otherwise it won’t help you to re-establish credit.
Once you’ve decided on an account, the main focus is to make your monthly payment on time and in full. The majority of your credit score is comprised of your payment history over the last two years, so a late or missed payment can certainly be an unwanted set-back.
It’s also wise not to make charges that will put you over 30% of your limit, or you may be placed in a higher credit risk category. For example, if your card has a $200 limit, you don’t want to charge more than $60 in any given month. It’s best to keep the charges small and manageable, so that you can demonstrate responsible money management skills.
Rebuilding credit can take time, so it’s important to be patient. If you are diligent and implement the tips mentioned above, you should be on your way to improved credit soon!