Nov
18
When you obtain a bankruptcy discharge, your credit will be a disaster. You should, nonetheless, work to repair your credit. It does take time. Nevertheless, you can accomplish it. Whilst there are various unique things you can do to repair your post-bankruptcy credit, this piece emphasizes two easy things you can do today.
1. Call all creditors who continue reporting open, delinquent accounts and give them a photocopy of your bankruptcy discharge.
Each time one of your accounts is sold, the new owner lists it as a delinquent account on your credit report. Even though the original creditor received notice of your bankruptcy, the new account owner didn’t get the notice. The new account owner, therefore, will continue to record the account incorrectly until you make contact with them and present them the correct bankruptcy discharge information. Once you finish this course of action every one of your pre-bankruptcy debts ought to be listed as “closed with bankruptcy” or something similar, instead of open and delinquent.
2. Open a new credit card account.
The current credit reporting system is designed to monitor and report how efficiently you manage your credit. Accordingly, you can’t restore your credit without having some credit. Despite the fact that some people may well encourage you to absolutely steer clear of credit cards following your bankruptcy, you simply can’t do that and expect to rebuild your credit. Plus, if you ever plan to own a home, you’ll need to have a healthier credit score than you’ll acquire coming directly out of bankruptcy and staying away from all forms of credit. Bear in mind, credit scores are about how efficiently you deal with your debt.
Despite the fact that you’ll likely have an incredibly hard time obtaining a regular unsecured credit card, you can apply. You just might stumble upon a creditor willing to offer you a card. However, it will probably come with a dreadfully high application fee, annual membership fee and other assorted fees. Rather than waste your money in that manner (you’ll never get it back), I propose that you get a secured credit card.
With a secured credit card you’ll furnish the creditor a deposit, more often than not $300 or $500. That deposit earns a small amount of interest and is the credit limit for your card. Such cards commonly have no application fee and no annual fees. They also normally report to all three credit bureaus every month.
By getting a secured card, you’re able to make little purchases on a recurring basis and then pay the bill when it comes due every month. By following this practice month after month, you’re establishing a new and improved credit payment history on your credit report.
While there are numerous actions you should take to restore your credit after bankruptcy, these two will have incredibly positive results on your credit score. I suggest you get going on them now.
By: Harvey L Cox
About the Author:
1. Call all creditors who continue reporting open, delinquent accounts and give them a photocopy of your bankruptcy discharge.
Each time one of your accounts is sold, the new owner lists it as a delinquent account on your credit report. Even though the original creditor received notice of your bankruptcy, the new account owner didn’t get the notice. The new account owner, therefore, will continue to record the account incorrectly until you make contact with them and present them the correct bankruptcy discharge information. Once you finish this course of action every one of your pre-bankruptcy debts ought to be listed as “closed with bankruptcy” or something similar, instead of open and delinquent.
2. Open a new credit card account.
The current credit reporting system is designed to monitor and report how efficiently you manage your credit. Accordingly, you can’t restore your credit without having some credit. Despite the fact that some people may well encourage you to absolutely steer clear of credit cards following your bankruptcy, you simply can’t do that and expect to rebuild your credit. Plus, if you ever plan to own a home, you’ll need to have a healthier credit score than you’ll acquire coming directly out of bankruptcy and staying away from all forms of credit. Bear in mind, credit scores are about how efficiently you deal with your debt.
Despite the fact that you’ll likely have an incredibly hard time obtaining a regular unsecured credit card, you can apply. You just might stumble upon a creditor willing to offer you a card. However, it will probably come with a dreadfully high application fee, annual membership fee and other assorted fees. Rather than waste your money in that manner (you’ll never get it back), I propose that you get a secured credit card.
With a secured credit card you’ll furnish the creditor a deposit, more often than not $300 or $500. That deposit earns a small amount of interest and is the credit limit for your card. Such cards commonly have no application fee and no annual fees. They also normally report to all three credit bureaus every month.
By getting a secured card, you’re able to make little purchases on a recurring basis and then pay the bill when it comes due every month. By following this practice month after month, you’re establishing a new and improved credit payment history on your credit report.
While there are numerous actions you should take to restore your credit after bankruptcy, these two will have incredibly positive results on your credit score. I suggest you get going on them now.
By: Harvey L Cox
About the Author:
Harvey L. Cox is an attorney and certified mediator. For more tips on how to repair your credit after bankruptcy visit his Credit Repair After Bankruptcy Blog.
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