| Getting Started
Rebuilding Credit
One of the best things about getting a fresh start on your credit by
filing for bankruptcy is that it allows you a chance to rebuild your
credit rating in the future. However, it is important that I tell you
that your credit rating won't improve as long as all your old, negative
information is still listed with credit reporting agencies, which as I
said before can last for up to 5 years.
All three major credit reporting agencies know all about you and your
debts before you even filed for bankruptcy. This information includes
late payments, charge-offs and judgments that were made against you.
After your discharge, all these debts should be listed on your credit
report as "Included in BK." If they are not listed that way, they appear
to still be active accounts in collection status, which could severely
change your chances to get credit.
Unfortunately, creditors rarely report updates in credit records after a
bankruptcy discharge. A couple of months after your discharge, you
should take the time to order credit reports so that you can make sure
all your discharged debts are listed as being included in your
bankruptcy.
You can contact the three major credit reporting agencies for your
accurate credit report at the following numbers:
Trans Union (800) 888-4213
www.transunion.com
Equifax (888) 397-3742
www.Equifax.com
Experian (800) 997-2493
www.experian.com
There are some more things that you can do to get your credit back in
shape after bankruptcy; they are:
Give Yourself Credit:
The best way that you can rebuild your credit after a bankruptcy is to
establish credit accounts that will report positive information on you.
You will have to get a single credit card with a small credit limit, use
it rarely and pay the entire balance every month before the due date.
This doesn’t work if you only pay minimum balances.
Read the Contract Small Print:
After your discharge, you will likely get several offers for credit
cards and other loans very quickly. You will need to know what you're
getting into before you accept these offers. Make sure that you fully
understand the interest rate, any other fees and the expected monthly
payments before you open a new credit account. You have to think that
credit card companies will offer anything to get you hooked, however
many of the great offers are only introductory and will double your
payments later on.
Be able to prove Your Payments:
Even after your debts are discharged through bankruptcy, you may need
proof that you don't owe these creditors before you can establish
yourself again. Keep a couple of copies of your discharge papers from
the court so that you can prove certain debts were discharged if you
need to in the future. This will make your job much easier in the end.
Make all of your payment on time:
Most credit card companies and utilities report late payments to credit
reporting agencies. If you make late payments every month, future
creditors always see you as a bad credit risk. Also, you should note
that most credit cards add a late fee whenever you're late with a
payment, which only makes your payments higher. You will have to avoid
paying late by paying your accounts in full on or before the due date.
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