BankruptcyStrategies for Building Credit After BankruptcyStrategies for Building Credit After Bankruptcy Bankruptcy is a hard process; one that has many strings attached which can last for several years. Most people believe that once you file bankruptcy that their credit is ruined for life. This is not true. You can rebuild your credit after bankruptcy, it just takes some time. The first thing that you should remember when you decide to rebuild your credit is that this process will take some time. However, once you get past the initial stage the momentum will build and you will be on your way to good credit again. You should begin the process of rebuilding your credit immediately after leaving the bankruptcy court. That’s right - step out the door and create a fresh start. How can you rebuild your credit so fast? Simple, you need to evaluate the bills you have remaining. Put all your bills on automatic payment, set for 2 days before they are due. This counts a lot on your credit report. While many utility and rental bills do not report positive remarks to your credit report, they will report negative ones. By avoiding any new negative marks you will begin to rebuild your credit. Your next step to rebuild your credit is to wait about 60 days after your bankruptcy has gone through and obtain a copy of each of your credit reports. You must get a copy from all three bureaus because each will have things reported differently. Review your reports carefully. Make sure that any accounts that were included in the bankruptcy are listed as such, and not as past due accounts. Look for double reporting and collection agencies that are trying to collect on accounts that have been included. Dispute anything that is inaccurate. The credit bureaus have 30 days to respond to the disputes. You will need to repeat this step again in about 3 months and possibly again after another 3 months until all the information is reported correctly. During this period make sure that you do not have any new items appear on your report. Finally, after about a year of trying to rebuild your credit through these means, you should approach a credit company for credit. The easiest way is to get a bad credit car loan. While the facts are you will pay a higher interest rate, you will also be reestablishing your credit. This car loan will, in fact, be your key to good credit again. Maintain your credit perfectly on the car loan. After about 6 months you will see a significant improvement in your credit score. This is at about the 18 month mark from bankruptcy. This is also the marking point that the FHA states you must be past to purchase a home after bankruptcy. You can rebuild your credit after bankruptcy, it just takes time. In the long run, the time will be appreciated because you will be able to reestablish yourself in many ways and be prepared for credit again. Copyright Rebecca Hubbard | All Rights Reserved |
 
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