After Bankruptcy Credit Repair

If you want to learn more about how to approach after bankruptcy credit repair then you will want to read this article. Specifically, we will be discussing the three most important steps you can take to improve your credit after a bankruptcy. These steps are cleaning up credit report for errors, establishing new revolving credit and establishing new installment credit. After reading this article you should be ready to begin the credit repair process.

Clean Up Credit Report Errors

Most people don’t realize how important is it is to get a copy of your credit report after your bankruptcy is discharged. You may have assumed that everything will be showing as having been included in the bankruptcy and that there will be nothing for you to correct. This is actually very rarely the case. Creditors habitually continue to report accounts that were included a bankruptcy is being open currently delinquent. This can significantly lower your credit score and make it very difficult for you to reestablish new credit. For this reason, the first thing you should do when your bankruptcy is discharged is get a copy of your credit report and clean up any existing errors.

Establish New Revolving Credit

Once your credit report has been corrected, it will be time to establish new revolving credit.  If  your bankruptcy is very recent, the easiest way to do this will be to get a secured credit card. A secured credit card is a credit card where you place a deposit with the lender and they issue you a credit line in this amount.  When looking for a secured card you want to make sure that the credit card company will report your payments to all three credit bureaus. You should also make sure that there is no application fee and that the total fees associated with the account are reasonable. They are some companies that offer credit cards that have almost $250 in fees associated with opening them. Because your credit limit will most likely be only $300-$500 these accounts are not a good deals for you.

Establish New Installment Credit

Once you have established good new revolving credit, you will want to establish an installment payment history. The easiest way to do this is to open a CD loan with your bank. Go and speak with the branch manager and explain your situation. Let them know that you’re very serious about improving your credit rating. See if they would be willing to let you do a one-year certificate of deposit and take out a loan against these funds.   Because the bank is fully secured, they are very often more than willing to open a CD loan for you.

 By following these simple steps, you will be well on your way to credit restoration!

PeteAfter Bankruptcy Credit Repair