The ground floor is where you will be with your credit after a bankruptcy. The climb back up to a respectable credit rating can be long and tricky, but there are some established tips that can shorten the process.
One way is by using credit cards. The problem that most people who have filed for bankruptcy have is that credit card debt was a major reason why they had to file in the first place. The way around this particular problem is by getting a secured credit card, these cards require that the cardholder put up some sort of collateral to secure the credit. Another type of credit card that can be useful are prepaid cards, in which the card holder pays upfront the credit card company and the amount placed is the amount of credit that the card will hold. The key with credit cards is to make payments consistently, because doing so factors into your credit score and consistent monthly payments will boost the credit score.
Another important way to reestablish some credit is by getting a home loan. Now, this may seem very unlikely to get with bad credit but there are some ways of getting a home loan. The most important thing to remember is that the loan will likely be very unattractive, in which you would have to agree to a mortgage with a higher interstate rate or an interest only loan. The loans that are available can certainly be unfavorable under normal circumstances, but if you can afford to pay these unfavorable terms then your credit score will benefit.
An additional way to improve your credit rating is by having a mix of credit. If you can have a debt accounts with credit cards, with car loans, business loans, and home loans, then that would establish a strong mix in the eyes of the credit bureaus. It shows them that you can manage your money properly and are more trust worthy.
All three of these ways can help decrease the amount of time it can take to reestablishing your credit score, but it should be noted that the key to all of them is being able to pay back what you borrow.
