If you are contemplating bankruptcy, have filed bankruptcy but it has not yet been discharged by the court, or if your bankruptcy has been successfully discharged, you are not alone. According to statistics from the Administrative Office of the U.S. Courts over 1.2 million people filed for bankruptcy in 2012. However, you are also going to want to know how to repair credit after bankruptcy.
However, that may not give you a comforting feeling because your credit and credit score has taken a serious hit. It’s true that you’ll soon, if you haven’t already, be receiving credit card and other offers of credit in the mail because those companies know that you cannot file another bankruptcy for a long time. But beware of the interest rates and annual fees being offered especially from companies offering you an auto loan.
Fully Recovering From Bankruptcy
If you want to fully recover after a bankruptcy you can. But you must be proactive. Sitting back and waiting for the bankruptcy and the listings on your credit report from each of your creditors to fall off your report will not help at all. To repair credit after bankruptcy you want to work in two general areas as soon as possible.
Develop Positive Credit
First, you want to develop positive credit. If you can get a credit card (possibly a secured card) with a decent interest rate, do so and use it. Do not put items on your credit card that you cannot pay off each month. Buy your groceries and gas (items you have to purchase anyway) on the card and pay the balance each and every month. You’re trying to demonstrate responsible use of credit. There are other proactive steps you can take as well. If you visit
www.eracreditservices.com and fill out the contact form we will email you a list of several steps you can take to increase your credit score.
Repair Credit After Bankruptcy
Second, you want to go through the process of after bankruptcy credit repair. You should try to remove the derogatory items on your credit report that are dragging your credit score down including the items included in the bankruptcy. You may be surprised to find out that these items do not have to remain on your credit report for 7 to 10 years. If you request it, your creditors (the ones in and outside of the bankruptcy) must verify the accuracy of the listings on your credit report. In many cases, if a creditor is not entitled to any more money from you (as in the case of a bankruptcy, foreclosure, short sale or repossession) they will choose not to respond to this request. Federal law then mandates that the item must be removed from all 3 major credit bureau reports (Experian, Equifax, Transunion).
Would You Fix Your Own Car?
You can do this yourself if you have the time to learn how to do it and the time to actually do self credit repair. But just as most people do not fix their own car, or represent themselves in court, it’s best to let an experienced company go to work for you. Is there a guarantee that your creditor will let it go and not respond? No, but if you do nothing you will be guaranteed that these listings will remain on your credit report for up to 10 years.
Repairing credit after bankruptcy is possible and very worthwhile. To find out more about increasing your credit score and repairing credit after bankruptcy visit www.eracreditservices.com , email [email protected] , or call 619-492-3040 or 727-222-0120.