It happens. When financial misfortunes build up and all other options have been exhausted, bankruptcy is the only other step to take. While a bankruptcy can stay on a credit report for up to 10 years, it is really not the end of the world. Rebuilding your credit after bankruptcy can be done; it just takes time and discipline. The following will offer some ideas about how to fix credit damaged by bankruptcy so everyone who has filed for it knows there is light at the end of the tunnel.
Pittsfield, MA -- (SBWIRE) -- 12/18/2012 -- In order to rebuild your credit after bankruptcy, patience is a must. Obtain a free copy of one’s credit report from Experian, TransUnion, and Equifax (the three major credit reporting bureaus) to see what the score is post-bankruptcy. Don’t be shocked; bankruptcy does some pretty serious damage. It is wise, though, to know where one’s score is so one knows how much work is to be done to repair it. Go over the credit report closely, looking for fraudulent or inaccurate charges. If any are found, write letters of dispute to the bureaus. They have 30 days after receiving said letters to investigate the claims and render decisions on them. While waiting to hear back about the disputed items, be sure to pay all bills on time and in full each month. Payment history comprises 35% of a credit score, so be diligent and get those bills paid!
Another method of rebuilding your credit after bankruptcy is by applying for new credit, but doing it cautiously. Begin by filling out an application for a secured credit card. This is a charge card for which a person puts a certain amount of money in an account with a lender. The card issuer then gives that person a line of credit equal to that amount. Use this card just as an unsecured one, being very conscientious about making monthly payments in a timely fashion. A year or two after bankruptcy, see if it’s possible to get a small loan or line of credit. Do not take more than can be handled based upon one’s income. If the loan is for an automobile, be sure the payments are reasonable and within one’s means. It may happen that one receives offers from credit repair companies to help fix post-bankruptcy credit. Be careful if considering working with one of these businesses. Often, they just want to trick people out of money they simply don’t have by asking for up-front fees and not providing any services in exchange for them.
http://www.Credit-yogi.com is an online marketing company nestled in the heart of the Berkshires in Pittsfield, Massachusetts, has more information about credit repair after bankruptcy, and there is always a knowledgeable staff member available to share it with interested parties.