All is not lost if you have made some bad decisions with your credit. If you have declared bankruptcy, your slate is clean, but your credit score will suffer. By taking steps to improve your score, you will end up saving a lot of money if you get a mortgage or car loan.



One thing you will want to consider is getting a secured credit card and not try to get unsecured credit lines. This is because while your credit score is low, you are likely to get rejected, and this will also show up on your credit history and keep your score low.

You can expect your credit score to rise gradually and get back to normal range within up to ten years. That is if you do not get into more debt trouble and take some steps to improve your score. It may feel unreasonably long, but unfortunately credit is important in today's society and we don't have a lot of control over how our scores are determined. And you can be thankful that your debt has been eliminated by bankruptcy, so you have a second chance you wouldn't otherwise have.

What to Do to Repair Your Credit After Bankruptcy

The first thing for people to do after bankruptcy is to take stock of all they have and make a plan to make things better. This can be done by having a budget. Make the budget realistic by adding every expense that there is.

Next, put some money aside via automatic deposit for emergencies and future planned expenditures like a house, college for your kids and retirement. Then plan your purchases and avoid impulse buys. If you really have a weak moment and buy something unplanned, use cash. Remember, you don't want the suffocating feeling of drowning in debt again.

If impulse buying was what got you into trouble before, find a way to short circuit that tendency. Aren't at least a little mad at yourself and the finance companies for your previous debt problems? Resolve to keep them out of your life this time. One good trick is to wait a day to buy that thing you think you just have to have. You will find that almost always the urge goes away.

Lastly, find a spiritual outlet. Get in touch with that part of you that knows more things won't bring you lasting satisfaction. As you resolve to live more genuinely, and treat your finances more maturely, your credit will automatically improve after your bankruptcy, and before you know it, your credit score will be back toward normal.