Repairing your credit after you file for bankruptcy.
Bankruptcy affects your credit in a negative manner, making it difficult to qualify for loans for a few years after you have declared bankruptcy.
Page, Lobo, Costales and Preston would like to share some helpful tips to repair your credit after a bankruptcy:
- Check your credit reports and credit score to make sure your bankruptcy is reflected as it should be. Make sure the debts that are part of your bankruptcy are properly noted with a “BK” notation. It is important your creditors know those items are no longer part of your debt.
- Apply for new credit but make sure it is in moderation. By doing this you are proving to lenders you are capable of handling credit and higher debt like a car loan. Make a budget and make sure you pay off your credit cards monthly.
- Make sure all accounts on your credit report are yours. Dispute any accounts you do not recognize and legitimately believe should not be on your report.
- Set up an automatic payment plan for your bills. You can either set them up through your bank or through each creditor. This ensures your bills get paid on time.
- Look over your credit report to make sure you recognize all creditors that have made inquiries to review your credit report. Remove any creditor inquiries you did not authorize or that were not from one of your original creditors.
- Make sure to remove items on your credit report after their time has passed. Items can only remain on your credit report for seven years from the date of last activity.
- If you’re having trouble getting unsecured credit, look to secured credit or a prepaid credit card. Those have a credit limit that’s equal to an amount you deposit at the bank. But be careful you don’t get sucked into one that demands big upfront or annual charges.