Most lenders and creditors will be thinking twice in lending you money or they may be wary to extend you any credits if you have declared bankruptcy. Bankruptcy has a negative effect in your credit rating for it has the ability to lower your credit score. To overcome this situation, you have to work hard in order to increase your credit score back to its higher position.

Declaring bankruptcy has significant negative effects on your credit score. You have to face the consequences like you are prohibited in opening charge accounts or purchasing items on credit, or worse, you may be forced in paying high interest rates. However, there are several actions you can do on how to improve your credit score after bankruptcy. The improvement of your rating will take time, no shortcuts is available. You should put some effort and time to improve your score and it will have a positive result within a year to one a half year.

After the awful bankruptcy, you must create a good history of paying debts and bills. You should make it habit to pay debts and bills on time. You can try automatic payments from your checking account to pay for the bills and debts. These are just simple steps you can do in improving your credit score.

As you continue the effort in paying bills on time, you should obtain a copy of your credit report and it is necessary to check the information especially for all discharged debts if they are correct. If erroneous data are listed, dispute it and change the data to the correct one, as soon as possible.

The most important thing in your bankruptcy experience is that you must prevent another situation that will force you to declare bankruptcy. Remember to make that awful experience as your learning experience and in the future know how to budget and have better financial decisions.

A simple precaution after a bankruptcy, there are certain individuals or companies that will claim that they are able to fix your credit problem quickly and then improve your score. Be aware of that because most of the time, they are fake and give you false promises. Do not pay money to them especially if they ask.

It is better that you take small steps to improve your credit because a small credit line is still a credit and by doing so, you give yourself the chance to illustrate that you can handle it dutifully. Your credit can improve in those simple ways. Remember that getting up with your credit after bankruptcy will take lots of time. Your job status affects your credit because it will be difficult to recover your credit if you change jobs often or self-employed.

Remember that a bankruptcy will be on your credit history for 10 years and a payment history of delinquent and late before your bankruptcy will stay on your credit history, but any debts should be mark as “paid”. It is also difficult to get or to be approved in any type of credit or loan after a bankruptcy; you will experience some creditors or lenders that will purposely aim you with high interest credit.