5 Simple Steps to Rebuilding Your Credit Following Bankruptcy

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Bankruptcy does not have to bind you to a string of negative credit for the following seven to 10 years. This essay will walk you through 5 simple stages to rebuilding your credit after bankruptcy.

Bankruptcy is frequently the last resort for many borrowers who have unmanageable obligations. Filing for bankruptcy will immediately discharge your obligations and relieve you of the unwanted calls from your creditors.

Although bankruptcy has many negative implications, such as your bad credit record being on your credit report for 7-10 years, you can rebuild your credit even before these unfavorable records expire with a little effort. Here are five simple measures to help you rebuild your credit.

Step 1: Learn about your present credit situation/b>

The first step in repairing your credit is to assess your current situation. Order all three major credit bureaus’ credit reports: TransUnion, Equifax, and Experian. You can obtain these reports online; it’s simple and safe.

Print each report and carefully read it. Attempt to comprehend the information contained in your credit reports and emphasize any unfavorable records or inaccuracies that are affecting your credit score.

b>Step 2: Examine the expiration dates/b>

Your bad credit record is required by law to remain on your credit report for 7 to 10 years, however the specific expiry date may differ across these three reports. Even if you have paid off your past obligations and been discharged from bankruptcy, your bad credit record will stay on your credit report.

Look up the exact date of each of the following negative records: judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. When these records expire, your credit score will very certainly rise significantly.

b>Step 3: Request Correction For Any Incorrect Records/b>

You have the right to write a separate dispute letter to each of the credit agencies to update your Equifax, Experian, and TransUnion records if you identify inaccurate records, fraudulent accounts, or data that should have expired on your credit reports. The agencies will begin an inquiry within 30 days to determine whether your requests are valid, and if so, they will repair the inaccuracy in your credit report.

Just a quick note: do not attempt to dispute any of the good information contained in your credit reports; it is a waste of time to do so. Negating good information may affect your credit score.

b>Step 4: Begin accumulating good credits/b>

Because there is no way to remove a negative entry from your credit report, the only method to enhance your credit score is to add excellent credit and build it up from there. You can easily accomplish this by obtaining a new credit card from a bank such as Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy).

Use your new credit card responsibly and make your monthly payments on time; this will help you establish a new history of positive credit behavior on your credit report. You may want to create additional credit card accounts or seek a loan in the future to increase your credit score even further.

b>Step 5: Track your progress/b>

Subscribe to a credit card monitoring service or purchase credit card monitoring software and use it to regularly monitor your credit score progress. As you continue to utilize credit responsibly and add fresh positive information to your credit reports, your credit score should steadily rise.

Summary

Bankruptcy does not have to bind you to poor credit for the next seven to ten years; but, you must be proactive in order to recover and repair your credit.

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