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How to Rebuild Your Credit After Bankruptcy in Five Steps

By Carol Stack

Republish: EasyPublish™ Published: 28Nov2009 Word count: 572 Viewed: 370 time(s) Get Free Content For Your Site

Filing bankruptcy often is the final solution for many people who have intolerable debts. With bankruptcy, you'll get rid of your debts immediately and relieve you from the hectoring calls of your lenders. But now you must rebuild your credit. How does one do that?

Although bankruptcy has many undesirable results (such as that your sub-prime credit record will stay on your credit report for 7-10 years), yet with a little work you can improve your credit even before these bad records run out. Here are five straightforward steps anyone can take to rebuild negative credit.

The 1st step to rebuild your credit is to look at exactly where you stand. all your three credit reports from those three countrywide credit offices: TransUnion, Equifax, and Experian. You can order these reports online, it is easy and safe.

Review each report closely. Try to comprehend the information listed in the credit reports and highlight any negative records or screw-ups that are damaging your credit report.

The second step is to check the expiration date. By law, your blemished credit record will remain in your credit report for seven to ten years, but the exact expiry date might differ among these 3 reports. Your bad record will still stay at your credit score although you have paid off your old debts and been released from bankruptcy.

Look up the precise date for each of the records including late payments, liens, bankruptcy filings, charge-offs, judgments, and collections records. You'll likely see a major elevation in your credit score at the time these records end.

The 3rd step is to ask for amending on any incorrect records. If you find inaccurate records, fraudulent accounts, or records that should have expired on your credit reports, you've got the right to send a new dispute letter to every one of the credit bureaus to correct your Equifax, Experian, and TransUnion records.

The bureaus will 1st a 30 days inquiry to determine if your requests are valid and if so , they will correct the error in your credit history.

Only one note, don't try to dispute any of the positive information reported in your credit reports. It is a waste of time to try to argue these records. Arguing positive information may harm your credit ratings.

The fourth step is to begin to build good credit. As there's no way to remove your bad record from your credit report, the simplest way to boost your credit history is to add good credits and rebuild your credit from there.

You can easy do this by creating a new card from banks which offer credit cards designed specially to assist folks rebuild their credit after bankruptcy.

Use this new Mastercard wisely and make the monthly payment timely; with this you are building new history of exceptional credit practices on your credit score. Over time, you'll need to open additional Mastercard accounts or get a loan to boost your credit score even higher.

Step five is to study your progress. Register for a Mastercard monitoring offer or get a Mastercard monitoring computer program and use it to trace your credit score progress carefully. Your credit report should get better gradually as you reliably use credit wisely and add new positive information to the credit reports.

Bankruptcy does not have to chain you to bad credit for the next seven to 10 years, but you have got to be proactive to recover and rebuild your credit.

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