HOW DO I IMPROVE MY CREDIT AFTER FILING FOR BANKRUPTCY?
When you have filed and completed a successful bankruptcy, the court gives you a clean financial slate, and the right to begin a fresh financial start. That's great, but many people worry that they will never have a decent credit score again. The truth is that a person's credit score after bankruptcy is often not that bad, and some people actually have higher credit scores a year after bankruptcy than they had before they filed their bankruptcy petition. So, here are some tips as to how people can rebuild their credit after bankruptcy.
1) Get a secured credit card. This kind of credit card is backed by a deposit you make, and the credit limit usually is the amount of money you have on deposit with the bank. This type of card is easy to get, and it's a great way to start on the road towards improving your credit. By making timely payments, you can rebuild your creditworthiness. and as you keep making timely payments, the credit card issuer might increase your credit limit or offer you a regular, unsecured credit card.
2) Get someone to cosign a loan or credit card that you apply for. If you do this, make sure you make every payment on time, otherwise it will have a negative impact on the score of the co-borrower.
3) Become an authorized user on someone's credit card. When the cardholder makes their payments on time, the credit bureau will probably also report the timely payments on your credit report.
4) Keep current with all payments you make after your bankruptcy is over.
Get a credit builder loan
. It's sort of weird, but with this type of loan you pay the lender back before you receive the money. These are usually small loans, and after making the necessary payments up front, you receive your money.
6) Keep up with your payments on all new credit cards that you get.
7) Keep your balances low on your credit cards.
8) Check your credit report to make sure that your bankruptcy is accurately reported. If you find a mistake, dispute it right away.
9) Consider getting help from a reputable credit repair service.
10) Make sure all of your payments to creditors get reported to the credit bureaus.
Take advantage of the fresh start you have received. If you're working, it's usually not that hard to get a car loan once you've obtained your discharge. You also should be eligible to apply for a mortgage loan and buy a home about two years after you've gotten your discharge.
Your attitude will be very important, and as long as you approach the future with the belief that this is now a new beginning for you and sort of like the dawning of a new day, the rest of your life could very well be the best of your life.
We wish you the best on your future journey, and hopefully, you will look upon the experience of having filed for bankruptcy as having been a very smart decision that resulted in a positive transformation of your life. Enjoy the journey, because being legally released of all of your debts is a great destination to arrive at.