Money Talks News: Rebuilding Credit After Bankruptcy

More than a million people file bankruptcy in this country every year. But that's not the end. It's just the beginning.

A bankruptcy will trash your credit score and it's going to will remain on your credit history for up to 10 years. But that doesn't mean you should wait anywhere near that long to start rebuilding. As soon as that bankruptcy is over with, start taking steps to rebuild that credit.

Step one: Go to and pull your credit reports. Make sure all the debts affected by the bankruptcy are listed that way. Then look for accounts that aren't yours and any other errors.

Step two: Start getting new credit. The best way is with a secured credit card. Don't worry about getting one.

Because you'll put up a deposit to guarantee the charges, almost everyone is approved.

That doesn't mean you should go into debt. Step three: Pay off that card, along with all of your other bills every month. Then there's step 4: Start accumulating some cash. Having emergency savings means not tapping credit when something comes up.

And finally, Step 5. If you made mistakes, learn from them. Filing bankruptcy doesn't make you a loser. Repeating bad behavior does.

Bottom line... Bouncing back after bankruptcy is going to take some time.

But the sooner you get started, the better. What you need now is more information, and I've got it waiting for you right here at Just do a search for "Bankruptcy."

For Money Talks News, I'm Stacy Johnson.