Bankruptcy leaves a black mark on your credit score. Your level of credit risk dramatically goes up in creditors' eyes. Fortunately, the effect doesn't last forever. Filing for Chapter 7 or Chapter 13 bankruptcy will affect your credit rating for up to 10 years. Long before the bankruptcy is removed off your credit report, you can qualify for credit cards with good rates and moderate fees. Certainly, a lot will depend on your specific situation, for example the level of income or age of bankruptcy. But you can take measures to improve your credit rating.

All creditors take into consideration a bankruptcy filing in your past. However, there are more items on your credit report which will influence on their decision whether to grant you credit or not. So, having bankruptcy doesn't not mean that you will not able to get credit at all.

If you plan to apply for a credit card, increasing your credit score is vitally important. It will give you more chances to get approved. Start with examining your credit report. Your FICO score is based on the information from your credit report, so it should contain full and correct data.

Make sure that there are no errors or inaccuracies. Errors in credit reports happen from time to time. For example, you can find that there are several open and overdue accounts, when actually they were closed and the obligations wiped out as part of your bankruptcy. If it happens, contact the credit bureaus and ask them to correct the data. The accounts should be reported as "included in bankruptcy."

The next step is to apply for a credit card. Living on a cash-only basis can be a right decision for people who can't rely on their financial skills. But if you want to improve your FICO score, you cannot stay on the sidelines. It is impossible to prove your creditworthiness without credit companies reporting. So somehow you need to borrow money and pay it back.

Don't get disappointed if you can't qualify for low rate credit cards immediately after bankruptcy. When your credit rating improves, you will be able to choose more beneficial plastics. A good choice for you is to apply for a secured credit card. It looks and works like regular plastics. The difference is that a secured card requires you to make a deposit. If you default on the payments, the funds will be used to pay off your debt. So the credit company won't lose money. That's why it is easier to qualify for a secured credit card than for an ordinary plastic.

Nothing in the finance industry lasts forever. Under Federal laws, bankruptcy can legally remain on your credit report for up to 10 years. However, you can reduce its negative consequences from the day your case is closed by making on time payments and using only a small part of your available credit line. Analyze what was the reason of your financial problems and change your spending habits. If you overspent, try to stick to a budget. If you did not have enough funds to make payments after job loss or other life-changing accident, build a decent savings pot. A well-considered financial management will ensure your future successful financial life and let you avoid getting in trouble.