While a bankruptcy will remain a negatively-reported action on your credit report for seven to ten years, the goal is to have it be the final negative action that can even be reported. Rebuilding your credit after a bankruptcy can be surprisingly easy and happen much more quickly than you might imagine. You might even qualify for a home loan in as little as two, though often three, years. Some of the best ways to improve your credit after bankruptcy are discussed below.

1.    You will likely be sent credit card invitations and offers immediately after your bankruptcy. These offers will generally be for secured credit (where you deposit money in a bank and can charge only against the amount deposited) and will have high interest rates. Despite this, get and keep one of them. Use it sparingly; but do use it. Then pay it off in full every month as billed.

2.    If you kept your car after the bankruptcy, keep paying on it. Keep paying on any secured installment loan that was reaffirmed.

3.    Monitor your credit report. Keep your eyes especially on debt that was discharged in the bankruptcy and the new credit you obtain after the bankruptcy.
 
4.    Open a checking or savings account. If you already only have a checking account, start a savings account. It’s free and need not show a large balance to provide creditors some assurance about you. Keep it growing, though, and do not treat it like a checking account.

5.    Do not be late on your remaining bills, especially to a utility.

6.    Avoid high-interest loans. These include “payday” loans and the like. Instead, take out a small personal loan, or buy a reliable yet affordable used car – using the credit of a friend or family member as a co-signer, if need be – and pay the debt quickly and on-time.

7.    Avoid the traps that got you into your original bankruptcy to begin with. Live within your means and develop a greater reliance on cash transactions.