Although bankruptcy can actually improve your ability to make timely payments to other creditors, it is still considered a negative mark on your credit. In some cases, it may improve your credit initially, but a bankruptcy remains on your credit for 10 years and will likely be a factor when getting credit in the future. It's important to understand this and to begin to repair your credit immediately.
After filing for bankruptcy and eliminating your past debt, you may cringe at the thought of more debt, but re-establishing your credit with new trade lines is an important step in improving your credit after bankruptcy.
In many cases, people who file for bankruptcy have perfect credit, right up until the bankruptcy. These people will have the easiest time rebuilding their credit. they may also choose to leave items out of a Chapter 7 Bankruptcy, such as a car. If they made their payments on time throughout the process, this will remain on their credit as a positive mark. It's important to keep as many positive items on the credit report as possible.
Immediately after bankruptcy, you can go to your bank and ask if they offer secured loans against a bank account. This is a loan that is secured against a bank account that you already have or will establish at that bank. These loans generally offer a very low interest rate and can help you quickly re-establish your credit. Some banks also offer secured credit cards, but be very careful, because most of these have very high fees and interest rates. These can be used to re-establish your credit, but most are designed to make you fail. In general, you should stay away from these offers.
Credit repair is a combination of removing negative items from your credit and adding new positive items. The only sure way to remove old items from your credit is to wait until it drops off. Once a negative account has been closed, it will expire in 7 years. At this time, if it doesn't automatically drop off, a dispute stating when the account was closed should get it removed.
Another popular option of having items removed from your credit report is to dispute everything negative.
"Credit repair is a crucial part of recovering from bankruptcy. Those who regret their decision to file bankruptcy most likely chose not to repair their credit afterwards." Everyone has the right to dispute items that are incorrectly reported on their credit report. You must submit a dispute in writing and the reporting agency is required to verify this dispute with your creditor. If the creditor does not respond or can not verify the debt, the negative information is removed. At United Credit Education Services we can help. Our state of the art professional credit repair service can remove negative items from your credit report and improve your credit scores. We offer a money back guarantee and a member of the BBB with an A rating.
Tim J. Thrift
248-327-4762
