Once you have successfully, passed through bankruptcy, some if not all of your previous financial obligations have been erased. You now have a fresh start to begin credit repair, a process that you should undertake now while also knowing that instant results are the figment of some.
Certainly, you know that you now have some “black marks” on your credit reports, matters that are now of public knowledge, and are known by your creditors. Indeed, your personal bankruptcy filing will stay on your credit report for seven years, while other negative credit information can be listed for 10 years, even longer.
The following are some of the steps you can take within one or two months of your personal bankruptcy judgment:
Review Your Three Credit Reports
More than likely, you are quite familiar with the three credit reporting bureaus and know each one by name: Equifax, Experian and TransUnion. You are well acquainted with the negative information that has been compiled against you and can probably name each incident off the top of your head. Head to AnnualCreditReport.com and obtain copies of all three of your reports.
Even so, once the bankruptcy court has issued its ruling you will want to obtain copies of your three credit reports and examine each one closely. First, make sure that the debt that was expunged by the court has been removed. Second, find out if the remaining information about you is accurate and current. No, you cannot change negative, but true information about you, however you can ensure that the the information contained therein is accurate.
Obtain Your Credit Score
What is your credit score right now? That’s one three-digit number you will want to know by heart and track its movement on a regular basis. You can obtain your credit score from MyFico.com, paying a nominal fee for this number.
Know that your score will have a large impact on your future credit applications. The lower your score, the harder it will be to obtain new credit. Even still, there are bad credit lenders that can make your lending dreams come true.
It Takes Time
Personal bankruptcy credit repair will take time and it may be at least a year before you can get approved for new credit again. If you still have credit card accounts, then make certain that you use them and pay your balances off on each month.
As long as you keep up on every other debt and payment obligation, then you will begin rebuilding your credit record. Do not falter here as any setback can harm your financial recovery.
First Things First
Credit repair following personal bankruptcy involves taking a series of very small steps which when taken together will lead to an improved credit rating. If you find yourself needing new credit, then applying to department stores or gas stations may be the route to go as these creditors usually provide other easiest way to obtain new credit. Consider a secured credit card too as yet another way to build up your credit, but be careful as the fees involved can be steep and the interest rates very high.
Lastly, it may take several years of practicing good credit habits before you are able to finance a new car again and maybe much longer before you can qualify for a home loan. Lenders base their underwriting decisions on your creditworthiness and current risk, factors that only increase in time provided that you employ sound credit repair strategies post bankruptcy.
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