To begin with ensure that you get regular credit rating reports from all the three credit reporting agencies (Equifax, Experian and TransUnion) Because not all lenders will check the reports of all three agencies neither can you be sure that only one will be checked so its best to be aware of what the lender is likely to discover in all the three credit score reports.

One you discover an anomaly in your credit rating records there are three ways in which you could dispute it; you could call the credit bureaus or you could file an online dispute or you could mail your dispute in.

Calling and online applications will of course be the fastest however if you intend to use mail, ensure that you opt for certified mail so that you have the proof of delivery. On the other hand, if you call them, you will have to furbish information that will help in identity verification like your credit card number, birth date, name, social security number, driver’s license number and address.

Alternatively, if you choose to go for an online dispute, you will simply have to click next to entry that you are disputing to identify the reasons for it. Normally, you will receive a message stating that the credit bureau is working to get the information for you. If you are disputing an entry through mail make sure that you include all the relevant information including personal verification details in your letter.

Ideally you should check your credit rating at least every three months to avoid issues with your credit score. Once your dispute has been received by the credit bureau they will get in touch with the creditor requesting a proof of the fact that the debt indeed belongs to you within thirty days and if such proof cannot be furbished the entry will be deleted from your credit rating records.

Now to begin with you are going to need a credit card secured or unsecured and the best time to get one is after you file for bankruptcy but before the discharge. There are very slim chances of getting a credit card from the Bank of America, JP Morgan or American Express. However you could find out about what you are eligible for from financial establishments like Orchard Bank, HSBC and Capital One without them pulling up your credit score.

The next step is to remember to not use the card before your discharge because you may jeopardize your bankruptcy filing by doing so. But once you have your discharge get a copy of your credit rating report so that you can go through it with a fine toothed comb and iron out any anomalies. It is important to ensure that every trade line reflects a zero balance and does not show charge offs or late payments. Just make sure that all the errors are ironed out and that every account is reporting correctly

Now you’re ready to use the card, you could also apply for another credit card and possibly an auto loan to diversify your debts. This will give you three credit lines on your credit score report.

When you use the cards make sure that make your payments in time and never just go for the minimum balance. Also ensure that you don’t pay off in full and carry some amount over each month. If you continue this routine for about three months you should b eligible for another credit card from the pre-selector financial establishments mentioned above.

Keep the trend of paying on time up and within a year of filing for bankruptcy your credit score should be fairly good. You may still not be a contender for the lowest interest rates however you will definitely pose a lower level of risk than what you did before you applied for bankruptcy.

The most widely accepted type of score is the FICO or Fair Isaacs Corporation score, however a credit score obtained from other agencies like Experian, TransUnion and Equifax is also commonly referred to as a FICO score even though all the four bodies follow slightly different algorithms to compute these figures . Credit score ranges from 300 to 900 however 720 is often considered to be the average. While just 18% of the Americans enjoy excellent credit rating in the vicinity of 740 and above; anybody with a score that falls below 619 would be considered a high risk candidate by most lenders.

In today’s dwindling economy when it is getting increasingly difficult to make ends meet without credit and most lenders vary of granting loans; your credit rating will have a deep impact on several areas of your life. For instance, there exists a significant disparity in the interest rates offered to people with a good credit rating vis à vis the rates offered to people with a poor credit score. So essentially a person with a credit rating in the range of 500 to 589 would pay 18% interest on a car loan but a person with a credit score that exceeds 740 would get the same auto loan at just 6.6%.

Also a person with a poor credit rating may find it exceedingly difficult to secure employment, with most employers calling for a credit score check for prospective employees; so, as you can see, a less than acceptable credit rating can mar several lucrative prospects and can wreck havoc on you financial well being.

Lets start with the first step; how will you ever know what your credit score is unless you go for regular credit rating reports. There are two advantages of checking your credit rating records often; one you will be able to handle possible errors at the earliest and also you will be able to identify instances of identity theft. If there is an erroneous entry in your credit rating report it will be investigated by the credit bureau without any cost to you.

The next and most important step, pay your bills on time. Don’t just go for the minimum balance that you need to keep those credit cards active. Also ensure that your checks reach the lending establishments at least two days before the due date, it would be futile to try and fool the bank by backdating the checks.

Guarding your credit history is another crucial step, according to the Fair Issacs Model; the one responsible for your FICO score, people with a long standing history of good credit usage are less risky. So don’t just go around arbitrarily closing down accounts or canceling credit cards because when you do so you wipe out part of the history and erase your debt to limit ratio and both these things will have a severe impact on your credit score.

Some people incorrectly assume that no loans would equate to a higher credit rating however this would equate to a no score which will as bad as a poor credit score. Since there will be no record of your debt repayment history the lending institution may b not be able to pin a risk level on you and you may find it difficult to get a loan.

Too many loan or credit card applications will reflect poorly on your credit rating.

Also ensure that you repay as much of your debt as you can this will help to increase your debt to credit ratio consequently raising your credit score.

Finally going for the right credit mix will also help your credit rating, so ideally your credit mix should include credit cards, installment loans, auto loans, retail cards and mortgages. If you just own a secured credit card you would still be deemed as a high risk customer by the lenders

History of Repayment: This factor carries the maximum weight and is responsible for 35% of the total figure. When a financial institution considers your application for a loan, the most important constraint from their point of view is of course you repayment history. So factors like regularity of repayment and records of late payment will all create a big impact on your credit score

Existing Loan: This is the second most important factor and it accounts for 30% of the credit rating. The amount of money you currently owe vs. your income often plays a crucial role in the lenders decision. Granting an individual credit for an amount that exceeds his repayment capacity is obviously the recipe for default that all lenders want to avoid.

Credit History: This is responsible for 15% of the credit score. Lenders want to know if you have been using credit for long usually a period two years should suffice and if you have any negative history. This will simply go to prove that you know how to us credit responsibly.

The types of debt: The different types of credit that you are currently using will impact 10% of your credit score. Lenders want to know how much has been borrowed from the different types of credit For instance, credit card debts will rate lower than stable long term accounts like mortgages.

Recent loans: The lender will also want to know about the different types of loans that you have applied for in the last six months. If you apply for a lot of loans with in a short period of time it will be seen in a poor light because if you have been granted most of the loans you may find it difficult to repay all of them. This factor accounts for 10% of your credit rating.

So as you can see your credit score is based on very simple common sense factors that can be manipulated to increase your credit rating.

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A credit rating can be in the range of 300 to 900 with both ends of the spectrum being almost impossible to achieve. Normally, the average credit score is in the vicinity of 740 to 800 with anything above 690 considered to be excellent and anything below 619 relegated as a poor credit score. Several factors go into the makings of your credit rating like your payment history, recent paid bills, bankruptcy and foreclosures.

The lower your score the more reluctant the lenders will be to give you a loan. However the power of your credit rating transcends the realms of personal financial behavior and a poor credit score is often interpreted as a sign of irresponsibility. So a less than perfect credit rating will not only have a bearing on your ability to procure loans but many employers also choose to get a credit score check done for their prospective employees. Even though many people regard this as an invasion of privacy, employers argue that a good credit rating can simply be an indication of how responsible, dependable and trustworthy a person is.

Even though most lenders would decline the loan application of a person with a bad credit score, this includes mortgages, credit card and personal loans; if you do manage to get a loan, you will be charged a substantially higher interest than the average Joe with a good credit rating. Even when you buy insurance coverage your premiums will  be higher. Not only this but also if you want to rent a house, the landlord may base his decision to rent out the house to you solely on your credit rating.

With so many far reaching consequences of the blemishes on your credit rating; it is best to take all possible measures to ensure a good credit score.