Reestablish Credit

• Experts recommend applying for a secured credit card. Obtaining this type of card requires an up-front collateral payment to a bank or credit union. Investigate the card to make certain the lender is not requiring any type of monthly insurance payment. Additionally, make certain the issuer reports to the three major credit bureaus. On a monthly basis, use the card, charging no more than 30 to 40 percent of the credit limit. When the bill arrives, promptly pay the entire balance.
  
  

Increased Credit Limits

• Once you have established a pattern of using the charge card and making prompt payments, your FICO score, which is a numerical rating of an individual's credit worthiness, will increase. Every five to six months, ask the card issuer if it will consider raising your credit limit. When the bank raises your limit showing an increased trust in your financial responsibility, your FICO score will reflect an increase.
  
  

Review Your Credit Report

• It is important to monitor your credit report. You don't need to pay a fee to obtain reports. Federal law mandates a free report from each of the major credit bureaus every year. Either order these reports online or call to request them. Make it a priority to review your report to make certain the information reflected is current and accurate. This is important in keeping your credit record clean. A secondary benefit of this review is to catch any potential identity theft.
  
  

Correcting Your Credit Report

• If you find an error in your credit report, you must communicate with the company in writing. Send along any supporting documentation. It is also advantageous to enclose a copy of the report after you have circled the erroneous information. The Federal Trade Commission recommends you send the documents via certified mail, noting return receipt requested. The credit companies will review your inquiry within 30 days and correct your record.
  
  

Installment Loans

• Student loans are exempt from bankruptcy. Individuals who have college loans can use them to rebuild credit. The best method is making payments on time and in excess of the minimum due. If you have the financial ability to finance a car, you may be able to get a loan. Finances charges may be high due to the bankruptcy, but after a year, you may be able to refinance at a lower rate.