After declaring bankruptcy, many people worry that they will never be able to turn their credit report around. However, that is not the case. There are many actions an individual can take to regain good credit after declaring bankruptcy.

First, make sure your credit report is accurate. It is important to order a credit report to double check all outstanding debt that should have been settled by the Bankruptcy process. You are entitled to receive one free credit report from all three credit-reporting agencies once a year. If there are any inaccuracies, it is imperative that the creditor is notified in writing immediately. Before you can rehabilitate your credit, you must make sure that it is accurate and correctly reflects your current financial situation.

Next, it is important to know that some of your financial responsibilities are unaffected by bankruptcy. For example, student loans, child support and some mortgage debt are not discharged in bankruptcy. In order to rebuild credit, it is crucial that those payments are paid on time. Furthermore, an individual may be able to gain credit by making their monthly rent payments. However, not all rent payments are recorded on your credit record. Check if your rent payments are part of your credit score, and if so, make sure they are paid on time. If they are not being reported, you may be able to request your landlord to begin reporting your payments. Consistently paying a monthly bill, such as rent, is a good way to earn credit.

Lastly, when you are ready, you should obtain a new credit card. There are two options available. The more fiscally conservative option is to take out a secured credit card. With this type of credit card, you will only be allotted an amount that you have already given the creditor. This can be compared to a pre-pay or debit card system. The alternative credit card is the more traditional form of credit card, where a company extends credit to the cardholder to spend up to a certain limit, pending repayment. Credit cards with annual fees and high interest rates are generally the easiest ones to acquire after a bankruptcy filing. Once you obtain a credit card, you should pay off your balances in full on a monthly basis to help re-establish your credit and avoid any interest charges.

By taking the aforementioned steps, you can begin to rebuild your credit post-bankruptcy.