Filing for bankruptcy totally ruins one’s credit, and recovering from the damage takes years. However, it is not a hopeless endeavor to begin rebuilding your credit after bankruptcy. The following information will offer some tips that will help get one’s creditworthiness back.

Phoenix, AZ -- (SBWire) -- 10/30/2012 --Many people have never heard of “rebuild your credit cards.” Believe it or not, it does exist, usually in the form of secured credit cards. A secured credit card is one for which an individual puts a certain amount of money in an account. The card issuer then gives that person a line of credit equal to that amount. Make sure that the issuing company will report the responsible use of the secured card to the three major reporting bureaus, then use it exactly like an unsecured card. As payments are made in full and consistently each month, one’s damaged credit standing begins to improve.

Know More about Rebuilding Your Credit After Bankruptcy

A secured credit card is just one solution to how to rebuild your credit after bankruptcy. Often after filing personal bankruptcy, one will receive many offers from unsecured credit card companies. Before accepting one of them, look for up-front or processing fees and sky-high interest rates. Also ascertain that the issuer sends proper usage information to the major credit reporting agencies. Try to get a secured or unsecured loan through the same processes used to obtain a credit card of either type. While interest rates may be higher than one would prefer, they will come down as one meets his monthly repayment obligations consistently.

Other ideas to solve how to rebuild credit after a bankruptcy are to stop beating oneself up about having declared bankruptcy. Letting go of feelings of embarrassment or shame is the first step toward allowing oneself to begin credit repair and rebuilding. Do a bit of soul searching to define what happened that resulted in filing for bankruptcy. Be sure to learn from whatever the mistakes were so they will not occur again. Also, don’t go it alone. Ask for some support from friends and family to bolster one’s trip to improved credit. After doing all of the aforementioned actions, develop a realistic budget – getting help from a professional financial adviser if necessary – and stick to it, paying all bills on time and in full each month. When drafting said budget, be sure to allow for a “slush fund” – money to be put aside for a rainy day or emergency – and set up automatic payments with as many creditors as possible.

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