So you been proved bankrupt by the court and now you been thinking How to Repair your Credit after bankruptcy. Here we going to discuss few major points that you should keep in mind and work on them if you really want to repair your credit after bankruptcy.
First of all, Immediately examine your credit report. There must be NIL balance in your report of credit accounts which are reporting correctly as “included in bankruptcy”. Bad report or information is reportable not later than date you field. Dispute the loans which were paid off but not appearing in the report with credit reporting companies or may with lender directly. If your report is not correct, inform instantly this to credit reporting company. These companies normally take 45 days to review its files. You can directly inform original lender in writing if it is not correct and agency do not update it.
Get a credit card which is secured. It is your saving account in which you get a credit limit which just equals your balance in saving account.. In market there are several “ Rebuilding” credit cards offered who propose an unsecured credit stream, but you must be alert as these are very expensive having big annual fees and high rate of interest. So just get a secured card which has nominal fess and low rate of interest.
Pay all of your balance due monthly & use card properly. To have best outcome maintain the balance below 30 % of your credit limit. Because rating of your credit is to a some extent calculated based on percentage of credit line you use. You can take a loan on installment. Because hybrid credit accounts is best solution to maintain your credit which raise credit in future if you keep making the payments on time.
Personal or car loans are the examples of installment loans. If you pay on mortgage loan or student loan these can also prevent your insolvency and maintain credit.
Your are advised to pay monthly bills regularly. Doing this lowers the bankruptcy with a span of time, as compared to bad payments which increases your bankruptcy. The latest data in your credit report effects much more on your credit score. Because the bad information become obsolete, and good information is replaced, this all improves your credit rating.