If you are interested in learning more about after bankruptcy credit repair, then you want to read this article.
We are going to just discuss the most frequently asked questions about repairing credit after bankruptcy.
After reading this article, you should be ready to begin your own credit repair.
When should I start credit repair? You should start credit repair and immediately after your bankruptcy is discharged.
After bankruptcy creditor is not going to happen overnight.
It is going to take time to reestablish your credibility.
Because of this, the sooner you start the better.
Shouldn't I just stay away from credit? After all that's what got me into this mess! Life would be easier if you could just stay away from credit.
The reality is that credit impacts more than just your ability to buy a new home.
Having bad credit can affect your ability to get a new job or to even qualify for insurance.
Normal things like shopping online even become impossible.
Because of this, most people need to focus on reestablishing their credit quickly.
Okay I get that I need to reestablish my credit.
What's the first thing I should do? The first thing you need to do is to get a copy of your credit report.
Most people don't think this is an important step.
They don't understand that creditors will routinely fail to report accounts as having been included in your bankruptcy and discharged.
Many creditors and collection agencies will continue to report your counts as being open and currently past-due.
This means that the damage to your credit continues long after bankruptcy.
It is critical that you get a copy of your report and dispute anything that isn't reporting accurately.
Okay I've handled my disputes now, now what? The next step is to reestablish good new credit.
There are two things you going to want to do.
The first is to get a secured credit card.
This is where you place a deposit with the credit card company and they issue you a credit line against this deposit.
The next thing you want to do, is to go down to your bank and get a CD loan.
You will open a CD with your bank and they will issue you an installment loan against the CD.
These two steps are the quickest way to reestablish new credit.
The reason for this is the portion of your credit score is judged by what's called credit mix.
What this means is that you want to have both revolving and installment credit.
After some time has passed you should be able to qualify for unsecured loans.
Remember, start immediately, clean up your credit report and reestablish good new credit! By taking these steps you will be well on your way to after bankruptcy credit repair.