Making the decision to file for bankruptcy takes a lot of consideration. Although it gives people a fresh start, it also negatively affects one’s credit and ability to borrow money.

The good news is it does not take long to bounce back if one is responsible and takes certain steps to build up credit.

Identify reasons for filing bankruptcy

According to Forbes, around 65% of people build up their credit score to over 640 after only two years of filing. One of the ways to help boost credit is to identify the reasons for bankruptcy in the first place. For some, it was an unexpected medical bill or job loss. For others, it was out-of-control spending. If it was the latter, it is time to create a new budget with plans to stick to it, or else the problem can quickly get out of control again.

When creating a budget, putting aside money for savings is a smart move. This helps reduce the financial impact of unexpected expenses.

Apply for secured credit card

According to US News and World Report, getting a secured credit card helps to start building credit without the chance of getting into debt. The line of credit is typically the deposit amount, which is usually between $200 and $300.

Perform credit report checks

After bankruptcy, it is important to check your credit report and make sure it shows the dischargement of all debts. Dispute any inaccuracies, as errors will negatively impact credit score.

Pay all bills on time

Another sure way to build up credit is to pay all bills on time. This includes rent or mortgage, utilities, car payments and more.