How to Repair Credit After Bankruptcy?

August 9, 2011 by  Filed under: Credit 

There could be many reasons people file bankruptcy. Many times it is beyond their control. People get into financial problem because they lost their jobs, or suffered some medical problem or were just not responsible when it came to their finances. The main point is what you do after a bankruptcy, to be more specific – how do you repair your credit after bankruptcy?

Having good credit is very important. Having bad credit could affect you in getting a good job. Many times you will get rejected for getting related to financial industry, solely because of your poor credit rating. Having bad credit, could adversely affect numerous aspects of your financial and emotional well-being. After filing bankruptcy does not, however mean that you will never get a second chance to re-establish credit. The door is not closed to you forever.

The first thing that you will want to do is to order your credit report and make sure that the information in your report is accurate. Make a note of all the items that is not yours, is not accurate, and is not up to date. Make a not on all the item which were included in bankruptcy so you can get it be updated and show included in bankruptcy. Many times it will show that you owe money on it.

Next get prepared to dispute all negative items on your credit report. In your dispute letter, be sure that you are including your name, mailing address, report number and each item’s with their account number. Always be sure to send disputes via certified mail so that you have proof that you did in fact send the dispute and that the credit bureau received it.

Even after filing bankruptcy it is possible for you to obtain an unsecured credit card. There are many banks who target recently filed bankruptcy clients with offers of unsecured credit. These banks know that you cannot file another bankruptcy for the next seven, so you are a better credit risk after filing bankruptcy than you were before. The best option is to start with opening a secured credit card with your local bank. Just go to your local bank and deposit money into your checking account and have them issue a secured credit card. Use the account for the next few months so the monthly payments are reported in all your three credit bureaus.

There are many other ways by which you can start to build new credit after filing bankruptcy.

To learn more about how to repair credit after bankruptcy please click this link.

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