There are many reasons why someone might be afraid to file bankruptcy and the lion’s share of those reasons revolve around fear of what their financial future will look like if they do. This is especially the case when it comes to issues of credit and understandably so.

It seems like just about everything these days is based on credit. You need decent credit to get a car, find a place to live, and even get a job in many cases. Without credit, you’re on a cash only basis for a while to boot, which is definitely hard in its own way. It’s only natural to wonder what will become of your lifestyle and your livelihood if you do decide to file.

The good news is that there is such a thing as a solid financial life after bankruptcy and there are certainly things you can do to get the state of your credit back in the pink sooner rather than later. Let’s take a look at some of the most effective.

Form Good Credit Monitoring Habits from the Get-Go

One of the most important habits that anyone can pick up – whether before facing bankruptcy or after – is that of keeping a close eye on their credit at all times. Even when debts are discharged, it can take quite some time for them to actually fall away from your credit report.

Keep an eye on this now and in the future so that you can make sure that discharged and paid off debts are cleared from your record in a timely manner. In the event changes are not made in a timely manner, then consider filing a formal request to have your personal records with the company updated with the three major credit reporting bureaus.

It’s also a good idea to keep an eye on how given changes affect your report overall so that you can learn more about how your credit is affected by your decisions.

Begin to Reestablish Your Credit

Once you’ve gotten your credit report back to a place where it’s up to date and clear of all the debts that should have been discharged, you’ll want to start thinking about beginning to rebuild your credit sooner or later. Bankruptcy can make it a challenge to get approved for new lines of credit. However, it’s important to note that difficult does not add up to impossible.

The toughest challenge you’ll actually face will be finding credit programs that come attached to fair terms, as the great majority of the credit offers that will come your way at first will be attached to extremely low spending limits, but high interest rates. However, smart comparison shopping in regards to credit cards can help here. When it comes to rebuilding credit, you might as well not even bother with any prepaid credit cards, as they don’t actually work to repair your credit at all.

Reestablish Your Borrowing Reputations

Once you get to a place where you have a credit card or two again, then it’s time to start thinking about rebuilding your reputation with your lenders. That said, it’s not enough to simply have credit cards that sit in your wallet unused. It’s important to use your cards and pay your balances off in a timely manner.

This doesn’t mean max out your accounts or bite off more than you can chew by any means. What it does mean is use your cards to pay for things like trips to the grocery store or the gas station. Pay your balances on time and keep said balances below about 40% of the total spending limit of your line of credit. Keep up with these habits and you’ll be back on top in regards to your credit in no time.