The common belief that a credit report ruined by filing for bankruptcy cannot be corrected is nothing but a myth. It is true that the negative impact of bankruptcy on a credit report is severe; however, that does not mean that the damage caused cannot be corrected. All you will need to get the best out of the tips that will be given in this post is a little patience and discipline.
These few tips will help guide your credit report back up. It may be slow but it will be consistent:
- Ensure that your bankruptcy is accurately displayed on your credit report: Most people feel removing their bankruptcy from their credit report is the best way to revive their credit. However, showing delinquencies and outstanding balances on your credit report is a better alternative. Make sure that the accounts that were discharged due to bankruptcy reflect the $0 balance on your credit report. Creditors reporting damaging account info after bankruptcy is not a new thing. Hence, it is crucial that you crosscheck your credit report frequently. Doing this may a cost you few bucks after some months but it is worth the investment. Do not be afraid to report debt discharges that are reported as active on your credit report. See more tips about this here.
- Make sure that you always pay accounts that are not bankrupt as soon as possible: Some of your accounts will be exempted from bankruptcy. An example is student loans. This type of account cannot be discharged. Active accounts will always have an impact on your credit score. Hence, the need to ensure that loans or debts are unfailingly paid on the agreed date. Also pay attention to accounts that are not reflected on your credit report. In most cases, this error will be corrected and if you have unpaid loans, your credit score will be affected also. What you want to achieve is let creditors know that you are moving on and your bankruptcy days are gone.
- Runaway from credit repair firms: A lot of firms will send you tons of emails claiming that they can help you remove bankruptcy from your report. There is a possibility that you might have come across their ads too. The truth is that most of the things that these firms can legally do for you, you can do on your own. All they will do is file a dispute for you and this service is not free. The worst part is that these filings have little or no effect on your credit report.
- Secure new credit: Getting new credit after filing for bankruptcy is challenging. However, it is one of the most important things to do to turn your credit report around. A few credit cards may permit applicants that have filed bankruptcy to apply for new credits. They do this with the understanding that you cannot legally file for another bankruptcy for 7 years.
You should do your best to avoid jumping from job to job. This may not affect your credit score directly, however, lenders will want to take a peek into your daily life. Hopping between jobs will only make them reluctant to grant you new credit.