Repairing your credit score after bankruptcy
Filing for bankruptcy may ruin your credit score, but that is something you can get fixed easily. Bankruptcy damages a credit score to a point where many give up on fixing. With patience, hard work, consistency and following the right steps, you will be able to fix the issue. Bankruptcy can stay on your credit report for up to 10 years but you will not be restricted on the use of your credit in that period. You can always repair your report to get your credit score back before you fix the issue
Follow these tips to repair your credit
Ensure your bankruptcy reflects accurately on your credit report
You want your credit score to report you have filed for bankruptcy, if not it will read an outstanding amount which will make the points on your credit even lower. If your account is discharged, your report should show zero points for that account. If your report does not reflect your bankruptcy you can send disputes claims to your bureau online or through email.
Work on fixing the errors on your credit report
Your main aim is to fix the whole credit report to get a better score. Your score may not improve if you have late payments, high credits or impending loans. Review your credit report and check for errors on your other accounts. You can remove all the negative information by paying for delete and settling all the over-dues.
Keep paying your loans and bills on time
Filing for bankruptcy does not mean that the rest of your accounts will be inactive. Ensure you pay your impending loans and bills on time to prevent your points from dropping further. Paying off your loans and credits on time will help improve your score overtime. Do not forget to make payments on accounts that are not included on your credit report, if you do not they can be reported to your credit bureau and will lower your credit scores.
Your bankruptcy report is here to stay
Don’t waste your time and money trying to clear your bankruptcy from your credit reports. You will see advertisements online about clearing it from your report, but these are just scammers trying to pray on the desperate. You cannot legally clear the bankruptcy statement out of your credit reports. When you file a dispute, the bureau will report it as verifies. Doing an illegal clearance will affect you and your finances in the long run.
Getting a new credit is one of the most important steps to repairing your credit score. Some credit companies approve applications for people with bankruptcy charges in their reports. If you find it difficult to get a new credit card, you can apply for a secured card where you make a security deposit to get a car approved. If you make timely payments on a secured credit, your lender can convert it to an unsecured. Ensure you make timely payments on your loans and credits, keep your credit balances low and avoid applying for too many credit cards at once if you want to boost your credit scoring.
Rebuilding your credit score may take more time than you expected. Be patient and follow all your credit rules to make sure there are no mistakes made on your progress.