Getting credit soon after a bankruptcy is not impossible.
While a bankruptcy can legally remain on your credit report for up to 10 years for a Chapter 7, and 7 years for a Chapter 13, you can start to lessen its impact immediately after your case is discharged by following a few simple rules.
First, its important to know that eighty percent of your credit score is based on payment history.
This includes both the good and the bad.
If you have no good credit to offset the bad credit, your scores will always remain low.
In order to rebuild your credit score you have to have credit.
To rebuild your credit, the first thing you should do is to get copies of your credit reports from all three of the main credit bureaus (Equifax, Experian and TransUnion).
You need to look for any errors or duplications.
You should also check to see if accounts that were included in your bankruptcy are being reported incorrectly.
If an account was included in your bankruptcy it should be reported as "included in bankruptcy.
" If its not, then you need to dispute the account with the credit bureau that is reporting it incorrectly.
Another thing to look for is the date of first delinquency.
The date of first delinquency is often misreported and is the date that triggers the 7 year rule so if the dates don't match up with your records you need to dispute this as well.
Its imperative for you minimize the damage as much as you can to increase your credit scores.
The second thing to do after a bankruptcy is to open new tradelines.
If you have difficulty qualifying for an unsecured credit card, a secured card is your best option.
You will need to deposit money into the bank that issues the credit card in an amount equal to the amount of secured credit.
Once you have it, don't make the mistake of maxing out your credit card.
Keep your balance under 25 to 30% of your credit limit, and if you can, pay it off every month.
Remember, using your credit card regularly is the key to rebuilding your credit.
When looking for a secured credit card, look for a lender that does not charge an application fee or have high yearly fees.
Make sure that they report to the major credit bureaus because it won't help to increase your credit score if they don't.
You should be able to get the card converted to an unsecured credit card once you show your lender that you are handling your accounts responsibly.
Get an installment loan such as an automobile loan.
If you have student loans in deferment, start making payments.
Maintaining a one-to-one ratio of credit card debt to installment debt is one of the fastest ways restore your credit score.
By this, I mean one installment loan to one revolving account.
Most importantly, never, ever be late on your monthly obligations, and try to pay down your balances whenever you can.
While a bankruptcy can legally remain on your credit report for up to 10 years for a Chapter 7, and 7 years for a Chapter 13, you can start to lessen its impact immediately after your case is discharged by following a few simple rules.
First, its important to know that eighty percent of your credit score is based on payment history.
This includes both the good and the bad.
If you have no good credit to offset the bad credit, your scores will always remain low.
In order to rebuild your credit score you have to have credit.
To rebuild your credit, the first thing you should do is to get copies of your credit reports from all three of the main credit bureaus (Equifax, Experian and TransUnion).
You need to look for any errors or duplications.
You should also check to see if accounts that were included in your bankruptcy are being reported incorrectly.
If an account was included in your bankruptcy it should be reported as "included in bankruptcy.
" If its not, then you need to dispute the account with the credit bureau that is reporting it incorrectly.
Another thing to look for is the date of first delinquency.
The date of first delinquency is often misreported and is the date that triggers the 7 year rule so if the dates don't match up with your records you need to dispute this as well.
Its imperative for you minimize the damage as much as you can to increase your credit scores.
The second thing to do after a bankruptcy is to open new tradelines.
If you have difficulty qualifying for an unsecured credit card, a secured card is your best option.
You will need to deposit money into the bank that issues the credit card in an amount equal to the amount of secured credit.
Once you have it, don't make the mistake of maxing out your credit card.
Keep your balance under 25 to 30% of your credit limit, and if you can, pay it off every month.
Remember, using your credit card regularly is the key to rebuilding your credit.
When looking for a secured credit card, look for a lender that does not charge an application fee or have high yearly fees.
Make sure that they report to the major credit bureaus because it won't help to increase your credit score if they don't.
You should be able to get the card converted to an unsecured credit card once you show your lender that you are handling your accounts responsibly.
Get an installment loan such as an automobile loan.
If you have student loans in deferment, start making payments.
Maintaining a one-to-one ratio of credit card debt to installment debt is one of the fastest ways restore your credit score.
By this, I mean one installment loan to one revolving account.
Most importantly, never, ever be late on your monthly obligations, and try to pay down your balances whenever you can.
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