Bankruptcy can be a useful tool for those who feel as though they are drowning in debt. Some fear bankruptcy because it does hurt your credit score and the bankruptcy remains on your report for years. However, you can rebuild your credit after a bankruptcy. NerdWallet explains some tips on how to rebuild your credit after filing. 

It is time to start anew after bankruptcy. Your first steps should be as follows: 

  • Create a budget 
  • Build an emergency fund 
  • Plan a credit strategy 

Always utilize your free credit report. You can assess the information to ensure that everything is accurate. When you see errors, report and dispute them as soon as possible. This will help improve your credit score. While bankruptcy clears your debts, it does not clean your credit report. 

Use your credit report to keep an eye on your credit score. Lenders will see your score and this is how they determine what type of credit you can receive in the future. Eventually, you may want to seek out a new credit card or a loan. 

The first credit card you should consider is a secured credit card. You make a deposit for this credit card and often have to pay annual fees and interest rates on the money. You can also receive a co-signed credit card or loan. Of course, this is a risk on behalf of the co-signer. 

Once you have a lender, you can begin to rebuild your credit. It is crucial to keep your credit card balances low and stay on top of the payments.