After Bankruptcy Credit
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After Bankruptcy Credit
After Bankruptcy credit can be hard to find if you don’t know where to start. The secret is to start repairing your credit right away by keeping an eye on your credit report, setting up a household budget, and begin rebuilding your after bankruptcy credit by applying for and using new lines of credit responsibly. The first step you should take to improve your after bankruptcy credit is to check your credit reports for errors. After filing bankruptcy the reporting agencies often times leave bad debts on your record rather than taking them off as required after bankruptcy. Get a copy of your credit report from all three reporting agencies, Experian, Equifax and Trans Union. You’re after bankruptcy credit depends upon your credit report, so you need to contact the credit bureaus and insist that those accounts be properly reported as “included in bankruptcy.” If you have other serious mistakes on your credit report, those need to be corrected as well. Your credit score is based on information in your credit report, so errors on your report can seriously damage your chances of getting after bankruptcy credit. After checking your 3 credit reports, your next step to improving your after bankruptcy credit should be to make a household budget. Make a monthly calendar with all of your income listed by date and schedule all of your household bills such as utilities, insurance, house payments, ect to be paid on or before the due date each and every month. The most essential element of acquiring after bankruptcy credit is to prove that you can make your payments on time. Lenders will check your household utility companies for your payment history, so make sure those are never late. Acquiring after bankruptcy credit is really just a matter of proving to your creditors that you can responsibly handle your credit and can repay your debts on time. You have to regain their trust by showing them a good payment track record. Lenders are looking for you to be able to handle two types of after bankruptcy credit, revolving and installment. Revolving credit such as a secured credit card is the easiest type of after bankruptcy credit to attain. You make a $200-$500 deposit with the bank issuing the card, and they approve your after bankruptcy credit line based upon that deposit. But what ever you do, don’t make the huge mistake of maxing out your new secured credit card. Maxing out your credit cards damages your credit score. If you want to increase your after bankruptcy credit rating, its best not to charge more than 30% to 35% of your credit limit. And it is especially important to pay the balance off in full each month. Light, regular use of your new credit card will build a solid foundation and maximize your chances of receiving a better interest rate on your next after bankruptcy credit card. Don’t just grab any secured credit card, look for one with no application fees or annual charges; you don’t have to pay excessive fees to build your after bankruptcy credit. Make sure the card you choose reports to the 3 major credit bureaus. You are not building a good after bankruptcy credit rating unless your payment history is being reported regularly. Finally, make sure it converts to an unsecured card after 12-18 months of on time payments. The second type of credit you must prove that you can handle is the installment loan, such as an auto loan, student loan or mortgage. Loan officers looking over your application for after bankruptcy credit need to see a rock-solid installment payment history. If you still have a student loan, that usually isn’t dischargeable in bankruptcy, you can use it to quickly reconstruct your after bankruptcy credit. Remember, its absolutely imperative to make your payments on time every single month, with no exceptions. And try to pay more than your monthly minimum even if it is just $50 bucks or so more each month. It will help you regain the trust of your lenders. Paying down your open debt is one of the best ways to prove your after bankruptcy credit worthiness. To Read More Click Here
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