Worried That You Won’t Ever Have Credit Again?
It Is Possible, It Is All About Rebuilding!
Pay all of your bills on time. You have your fresh start through your bankruptcy filing; now make sure you are making your mortgage, car loans, and/or student loans payments on time each month. These types of payments are reported to the credit bureaus and will be reflected on your credit report.
Check your Credit Report to ensure your accounts are being reported correctly. Accounts that were included in your bankruptcy should be reported as “included in bankruptcy.” This helps equalize your credit report and score at the time of filing and moving forward. As a result, it is very important that your review your credit reports for accuracy.
Make sure that the accounts you included in your bankruptcy are not being reported as “open and overdue.” If for some reason your accounts have not been updated, then you must be proactive. First contact your creditor to resolve the issue. If the creditor does not take the necessary action then you will need to dispute the account with the credit reporting agency (Experian, TransUnion, Equifax) the a
ccount is showing improperly on. You can follow the agencies dispute process either online or by mail. It is the creditor’s responsibility to correct the error with all of the credit reporting agencies.
Apply for credit. You do not want to apply for too much credit at one time and should be very careful not to fall into a trap of relying on credit. You will want to establish a budget and emergency fund so that this does not become an issue.
Many people receive credit card offers shortly after filing for bankruptcy, because the lenders are aware that bankruptcy protection may be limited. Use credit to benefit you, by utilizing only a small portion of your available credit and by paying the balance in full at the end of the month. This will give your credit score a needed boost. If you are concerned about applying for a credit card yourself, another option is to ask a trusted friend and/or family member with good credit if you can be an authorized user on one of their accounts. They will not be affected by your previous bankruptcy; however, you will immediately have the full benefit of their accounts good standing.
Larger loans, when paid on time each month, will also certainly help your credit. When considering the purchase of a car or home, it is best to have been rebuilding for a while before applying for these types of loans. Although car loans will be available shortly after your bankruptcy, the interest rates will be very high. As for a new mortgage, mortgage lenders are more conservative in their lending. You will need to wait at least 2 years and your credit report should show your perfectly rebuilt credit. Start saving for a down payment while you wait! You can do it.
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