Bankruptcy is the term used to refer to an individual who is incapable of paying one’s credits. Filing bankruptcy can affect the credit status or rating of a person. When a person filed bankruptcy, it will stay in the credit records for 10 years. If you want to know how to repair your credit after bankruptcy, you must be patient and you need to allot time and effort. Below are the simple steps that you can easily follow to improve your credit rating after bankruptcy.
Procedures for Improving Credit Status After Bankruptcy
Improving one’s credit status after filing bankruptcy is difficult. It is important that while you are on a bankruptcy status, you get new accounts that you will use to create a good credit history. To do this, the first thing that you should consider is getting a credit card. If you are having problems getting unsecured credit cards, the best thing to do is to apply for secured credit cards. These cards are different from the usual credit cards because you need to put a deposit before you can get a card. The amount that you deposit will be the credit limit in your card. You will get your deposit when you established a good credit history at the company.
After you establish a good credit history for at least two years, it is best if you get a store credit card. Compared to secured credit cards, store cards are easier to get. Aside from credit cards, you can also apply for a personal loan or a car loan. These types of loan can help improve your credit rating. However, be sure that you pay your bills for the loans as well as the credit cards on time.
Establishing a good credit history may take several years. Remember to ask bureaus for credit reports. Check the information in the reports. Make sure that you check wrong data in the reports. If you see any incorrect information, the best thing to do is to highlight it and get a copy of the report. Send the copy with the correction to the bureau.
After 10 years, remember to check the bureaus about your bankruptcy status. If your bankruptcy status has been removed from your record and you have established a good credit status, then you can easily apply for secured credit cards. To avoid suffering from bankruptcy again, it is important to keep a modest lifestyle. Above all, do not exceed the credit limits in your cards.
