Re-establishing your credit after you have had trouble is of the utmost importance. You will probably want to purchase a car, home or otherwise enjoy the benefits of good credit. And there is no reason you can't achieve this with some discipline and a bit of planning. The first thing you should do of course is to make sure your bills are being paid on time and all delinquent accounts have been dealt with. Then begin the process of establishing your credit again.

A typical first step is to apply for a secured credit card. Many banks will allow you to make a small deposit, and in return they will issue you a card with a limit matching your deposit amount. If you pay your monthly payments on time, you will typically get an opportunity after six months to deposit more money and extend your credit line by that same amount. Don't be afraid to use this card; having credit and not using it is not the best strategy unless you have too much credit. Use it wisely, and make payments religiously.

After some time passes you should try to find some time to visit your bank. Talk to someone there and see if you can't establish a line of credit. Don't take a personal loan and go to Las Vegas! Having this will be the true test to see if you're ready for a higher level of credit.