One’s credit rating is destroyed after a bankruptcy. However, it can be easier to restore one’s rating after bankruptcy if a little thought is given to a strategy before filing bankruptcy.

Tip 1. Your Accounts.

The financial position you enjoy (or otherwise) with your creditors is reflected in your credit score. In other words your creditorsare key to your financial position as regards your credit rating.

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. Your Credit Cards.

For many, credit card debt got them into trouble in the first place. However, to get credit, and improve your credit score, you must demonstrate that you can spend responsibly. As long as you are disciplined and pay off your balance at the end of the month, this will be seen as positive and reflect on your credit rating.

Tip 3. Try a Secured Credit Card.

A secured credit card works just like a normal credit card, but you credit limit is part of the price of the card. Rather than have a card that comes with an agreed limit, you pay your credit as a cash deposit with the card issuer. You may then go out and spend on the card up to the amount you have deposited.

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.

If you can persuade a relative or friend (with a good credit record) to add your name to their card, you will benefit from their history and this will improve your rating. The other person’s rating is not affected by your bankruptcy and you do not even have to use the card, it can be totally passive.

Just keep in mind, however, that if the other person’s rating drops, this will affect you too.

For a lot of folk however, harsh financial times have come together to make managing 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. Also published at How To Restore Your Credit Score After Bankruptcy - 4 Tips.

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