Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Bankruptcy » Article
 

5 Easy Steps to Rebuild Your Credit after Bankruptcy




By Cornie Herring

Bankruptcy often is the last ultimate solution for many debtors who have unbearable debts. With filing a bankruptcy, you will get rid of your debts instantly and relief you from the harassing call of your creditors.

Although bankruptcy has many undesirable consequences such as your bad credit record will remain on your credit report for 7-10 years, but with a little work, you can improve your credit even before these negative records expire. Here are five easy steps you can take to rebuild your credit.

Step 1: Get to know your current credit status

The first step to rebuilding your credit is to look at exactly where you stand. Order all your three credit reports from those three national credit bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.

Print each report and review it closely. Try to understand the information listed in your credit reports and highlight any negative records or inaccuracies that are damaging your credit score.

Step 2: Check the expiration dates

By law, your bad credit record will remain in your credit report for 7 to 10 years, but the exact expiry date might be different among these 3 reports. Your bad record will still remain at your credit report although you have pay off your old debts and discharge from bankruptcy.

Look up the exact date of each of bad records including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You will likely see a major improvement in your credit score when these records expire.

Step 3: Request For Correct On Any Inaccurate Records

If you find inaccurate records, fraudulent accounts, or records that should have expired on you credit reports, you have the right to send a separate dispute letter to each of the credit bureaus to correct your Equifax, Experian, and TransUnion records. The bureaus will initial a 30 days investigation to see whether your requests are valid and if so, they will correct the inaccuracy in your credit report.

Just one note, don't try to dispute any of the positive information listed in your credit reports and it is a waste of time to attempt to dispute these records. Disputing positive information may actually harm your credit scores.

Step 4: Start to create good credits

Since there is no way to remove your bad record from your credit report, the best way to improve your credit score is to add good credits and building up your credit from there. You can easy do this by open up a new credit card from banks like Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy).

Use this new credit card responsibly and make the monthly payment timely; with this you are building new history of good credit behavior on your credit report. Over time, you may want to open additional credit card accounts or obtain a loan to boost your credit score even higher.

Step 5: Monitor your progress

Subscribe to a credit card monitoring service or get a credit card monitoring software and use it to track your credit score progress closely. Your credit score should improve steadily as you continue to use credit responsibly and add new positive information to your credit reports.

Summary

Bankruptcy does not need to chain you to bad credit for the next seven to ten years, but you have to be proactive in order to recover and rebuild your credit.


 
 
About the Author
Cornie Herring is the Author from StudyKiosk.com. StudyKiosk-Credit Basics is an informational website on credit basics and debt consolidation.

Article Source: http://www.simplysearch4it.com/article/44907.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/44907.html" as shown above and make it hyperlinked.



  Some other articles by Cornie Herring
When Your Credit Score Become Important?
Have you ever wonder why your online application for credit can be approved in 60 seconds? Or get pre-qualified auto loan for a car without asking you how ...

Get To Know The Bankruptcy Filling Process If This Is Your Option
Filing for bankruptcy is a very personal decision. Heavy debtors may choose to file a bankruptcy if they see no other way out ...

Payday Loan Is High Cost Cash, Avoid It!
Payday loan is a small, short-term, high interest rate loan. It also known as cash advance loan, check advance loan, post-dated check ...

What Is Accelerated Debt Consolidation?
Are you burdened with debts? Are you finding it harder each month to meet the minimum payments for your debts? Your debts are piling up every ...

What Is A Lien On A Property?
When you use your home as the collateral to get a loan, your lender will have a lien on your property. What does this mean and what are the risks involve ...

Consolidate Debt With Home Equity as Security
In these days, hard to find a person with zero debt and most people have more than one debt. You may have ...

  
  Recent Articles
Five Ways How A Credit Monitoring Service Can Help Post-Bankruptcy Individuals Rebuild Their Credit
by Dulce Azogue

Dead People Cannot File Bankruptcy
by Victoria Ring

Get To Know The Bankruptcy Filling Process If This Is Your Option
by Cornie Herring

What Are The Consequences of Filing For Bankruptcy?
by Cornie Herring

Personal insolvencies are at record levels across the UK: Which way for the debtor?
by Martin McAllister

Smart debt recovery with alternatives to bankruptcy!
by Kirthy Shetty

What are your alternatives for filing bankruptcy?
by reethi rai

Do Bankruptcy Alternatives Work?
by Susan Davis

Can You Choose the Type Of Bankruptcy Filling?
by Cornie Herring

6 Steps to Take before Bankruptcy
by Cornie Herring

5 Easy Steps to Rebuild Your Credit after Bankruptcy
by Cornie Herring

Closer Look at Bankruptcy
by Gina James