When you are thinking about filing for bankruptcy, there may be many reasons for you to hesitate. One common fear is what happens to your credit afterward. It is a misconception that bankruptcy ruins your credit in the long term and prevents you from obtaining credit again.

While a bankruptcy filing will cause a drop in your credit score, it is not a permanent consequence. In fact, getting out of debt with bankruptcy sets you up to make your credit even better than it was in the past. Here are some suggestions on how to achieve good credit after bankruptcy.

Fix errors on your credit report

 After you declare bankruptcy, make sure you verify it is on your credit report. While you may think you do not want bankruptcy to show up on this report, it is important for it to be accurate. If your bankruptcy is not on your report, you will have outstanding and delinquent balances instead. Your credit report should show $0 balances on discharged accounts. Sometimes, creditors report negative account information even after bankruptcy. You can dispute these inaccuracies with the credit reporting agency.

Seek sensible new credit

 Believe it or not, it is possible to get new credit after bankruptcy. You may not qualify for every credit card out there, but you can start rebuilding credit with easier options. Credit that you can typically get after bankruptcy includes secured credit cards, credit-building loans and department store credit cards.

Consider co-signing

 Do you have a reliable relative or friend who has a good credit score? If so, think about approaching this person about becoming a co-signer on his or her credit card. This helps you establish and maintain a positive payment record. After being an authorized user on an account for several months, you will be in a better position to apply for credit in your name only.