5 Simple Ways You Can Rebuild Credit after Bankruptcy
April 20, 2012
Author: Allison K.Watkins
After bankruptcy, it is very important that you revive your credit score and manage your finances effectively. When you file for bankruptcy, you will be free of your debts immediately and you will not be pestered by your creditors. You should then make sure that you do not get into debts again and should work towards rebuilding your credit.
Ways to Rebuild Credit Score after Bankruptcy
If you have filed for bankruptcy, it will be seen in your credit report for about 7-10 years till you revive your credit score. It will be removed if you are able to improve your credit rating before the bad credit records expire.
Some simple ways to rebuild your credit score after bankruptcy are:
- Understand your credit status and evaluate your current credit report standing. You can get three credit reports from three national credit bureaus like Equifax, Trans Union and Experian. You need to then review each report and analyze your financial situation. You can also seek help from an expert in the field and analyze the details in the credit report and check for any inaccuracies which are affecting your credit scores.
- Though the bad credit details or bankruptcy details remains in the report for about seven to ten years, you should be sure of the expiry date for each of these three reports. Check on the exact date of the various bad credit records like late payments, filing of bankruptcy, judgments, liens and collection records. You can effectively rebuild your credit score when you see these bad records disappearing from the report.
- Evaluate your credit report carefully to check on any mistakes or inaccurate records, frauds or just to check if the records have not expired. In such a case, you can send a dispute letter to the various credit reporting agencies to rectify the errors. They will then conduct an investigation and check whether your request is valid and genuine.
- As you have already filed for bankruptcy and your poor credit scores are in the credit report, the next step is to work towards rebuilding your credit rating and improving your scores. For this, you can open a new credit card from banks which cater to the needs of people who have filed for bankruptcy and are trying to revive their credits. This new credit card should be used wisely and effectively by making payments on time and without defaulting. This will help you to improve your credit scores. You can even, over a period of time, apply for loans which can improve your scores further.
- Once you have started rebuilding your credit scores, you should use a charge card monitoring program or software to check your performance. It will calculate and check your credit score progress effectively. You should work towards improving your credit score at a steady pace by using your credit responsibly and including good credit scores in the credit reports.
Filing for bankruptcy does not mean that you have to live with the drudgery throughout your life. You should take it as a challenge and try to overcome it by improving your scores steadily and rebuilding your credit.
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