“Rebuilding Your Credit After Bankruptcy in 6 Steps” is a series of posts that will appear over the course of the next couple of weeks. Following these 6 steps will help you lay the foundation to achieve better credit. Here are the six steps:

Step #1: Review Your Credit Reports
Step #2: Get a Secured Credit Card
Step #3: Get an Unsecured Credit Card
Step #4: Pay Your Monthly Bills, On Time and Every Month
Step #5: When Appropriate, Get and Pay a Mortgage Payment or Car Loan
Step #6: After Seven (7) Years Ask the Credit Bureaus to Remove the Bankruptcy Off of Your Credit Report

By following the first four steps of this six step plan you are well on your way to reestablishing your credit.  After your credit score has inched ever closer to the 700 mark you can go and make a larger purchase like an automobile or house.  Don’t purchase these items simply for the sake of getting them but if you need a newer (notice I said “newer” not “new,” big difference) automobile you can do this with your newly established credit.  Like your other bills, you have to pay this each and every month.  It’s also important that you purchase something within your means.  Look over your budget and make sure that you can afford this new vehicle or house.  We don’t want to ruin your credit after you’ve worked this hard to rebuild it by failing to make the necessary payments.

Making these monthly payments on a big-ticket item like a house or car is going to show the credit reporting agencies and those checking your credit that you have taken the steps necessary to rebuild your credit.  They will view you as someone who is worthy of lending to.  By this point in time your credit is going to be as strong, if not stronger, than your other friends and family.