Facts

• The credit scoring formula takes a variety of factors into consideration, such as the age of your accounts, the type of accounts you carry and how frequently you miss payments. Because everyone's credit history differs, the amount of credit damage bankruptcy causes -- and how much time it takes to restore your credit -- also differs. Your credit will gradually recover over time, but actively working on improving your credit rating helps your score increase more quickly.
  
  

Features

• If you have accounts that survived the bankruptcy, such as a mortgage, automobile or student loan, making timely payments on those accounts will improve your credit score. If you do not have any remaining debts after your bankruptcy discharge, consider applying for a secured credit card. Secured credit cards often do not require a credit check. As long as you pay on time and maintain a low balance, and the credit card company reports the account to the credit bureaus, a secured credit card will help you repair your damaged credit.
  
  

Time Frame

• You can begin improving your credit immediately after a bankruptcy discharge. If you filed for Chapter 13 bankruptcy, you can even start improving your credit prior to your bankruptcy discharge, since Chapter 13 bankruptcies last anywhere from three to five years. If the court has yet to discharge your Chapter 13 bankruptcy, you must have the bankruptcy trustee's approval before opening up new accounts -- even if your intention is repairing your credit rather than incurring new debts
  
  

Misconceptions

• Many consumers mistakenly believe that once the court discharges their bankruptcies, all evidence that they filed for bankruptcy -- and of their unpaid debts -- automatically disappears from their credit reports. The Fair Credit Reporting Act states that a bankruptcy can appear in your credit files for 10 years from the date you filed the case. Although a bankruptcy is detrimental to your credit scores and can remain for up to a decade, the older an entry is the less impact it has on your credit scores.
  
  

Warning

• Incorrect notations within your credit file can impede your credit score's recovery. After a bankruptcy discharge, your credit report should reflect a zero balance for all debts that were included in the bankruptcy. If it doesn't, you can file a dispute with the credit bureaus to have the balances corrected. Failing to carefully monitor and ensure the accuracy of your credit reports can leave you struggling to repair your credit after bankruptcy for longer than necessary.