After bankruptcy, its easy to think that you can do without any form of credit. However, the reality is different, and in time you may well need to borrow money or even open a bank account. The good news is that there are things you can do to improve your rating, rather than just wait for things to change.

Tip 1. Your Accounts.

It’s important that you understand how your credit score is compiled. It is not just a single agency that gives the rating, but data that the agency receives about your credit position from your creditors. This is analysed and your score worked out.

Make sure that your bankruptcy includes all your creditor’s accounts and that the balances show zero. The next step is to contact your old creditors and ask them if they would be prepared to stop reporting your account to the credit agencies. They are not obliged to report to the agencies, and if you can persuade only one or two to cease reporting, this can have an enormous positive impact on your credit score.

Tip 2. Credit Cards.

You may be surprised to know that credit cards, used properly and paying the balance off each month can help improve your credit rating, because the powers that be see you acting responsibly. So, even if you have vowed never to use one again, it is in fact a good idea to try and get a credit card after bankruptcy.

Tip 3. Try a Secured Credit Card.

A secured credit card is an almost risk free way to restore your credit rating. Basically, you pay the credit limit up front, and it is held as a deposit. If you find that you cannot repay the balance you can hand the card in and clear the balance with the deposited amount, which will be cover what you owe.

Cash spending is not seen by the credit agencies. Credit card spending is, and if you pay the balance every month this will be seen as responsible spending, and your credit rating will improve. In addition, there is no danger of getting into credit card debt again as the maximum limit is covered by your deposit.

A word of caution, some less reputable card issuers are not registered with the credit agencies, making any card they give you useless in your quest to increase your credit score. Always ensure that any issuer you go with is registered ar the credit bureaux.

Tip 4. Get Included on a Friend’s Credit Card.

Having your name put on someone’s card is not the same as using it, and indeed you don’t need to. As long as they have a good credit rating, this will reflect back on yours, without even using it! The other thing is that the other person will not be disadvantaged by your poor credit hstory.

Be careful however, because if the other person experiences financial difficulty, then this will have a detrimental effect on your rating, but as long as that does not happen, you will see an improvement in your credit rating.

For a good number people however, harsh financial events have come together to make repaying their debts impossible, and has left them wondering how to claim bankruptcy. If you are in that situation and need more free advice, visit www.howtoclaimbankruptcy.net.

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