If you have a recently discharged
bankruptcy, you are probably wondering what you
need to do to get your life back on track. One of the key things you need
to do is begin after bankruptcy
credit repair. People tend to put this off, thinking they will just
stay from credit for a while. While being careful with credit and not falling
into old habits is a good idea, the reality is that you should begin
credit restoration just as soon as you possibly can. Why? Because
bad credit is expensive and impacts more than just your ability to buy a new car!
It can also prevent you from getting a job or even certain types of insurance. Let's
take a look at how you can get started today!
You may be surprised just how bad your credit report looks!
Very often, people forget the critical first step to after bankruptcy credit repair. The
first thing you need to do is get a copy of your
credit report. This is a critical step that should not be forgotten.
Why is it so important? Because chances are that one or more of your old creditors
have not updated your account to show that it was included in your
bankruptcy. Instead,
they are reporting the account as being open and currently past due. This
is a disaster when it comes to getting new credit because creditors will assume
that the account was not included in your bankruptcy and that you have derogatory
credit after the bankruptcy. It will cause your
credit score to be lower. You will need to dispute each account that
is not reporting correctly with the three credit bureaus. It's a good idea
to include a copy of your bankruptcy discharge and schedule showing that the account
was included with your dispute.
Two easy ways to reestablish credit
You may think that there is no point in trying to get credit right after
your bankruptcy has been discharged. After all, who would lend to you? The
reality is that getting credit right after a bankruptcy is not that difficult -
you just have to know where to look.
Secured Credit Cards
The easiest way to start reestablishing credit is to get a secured credit card.
You will need to place a small deposit with the credit card company and they will
issue you a credit line in the amount of that deposit. Just make sure that
you select a company that reports to all three credit bureaus!
CD Loans
Like a secured credit card, you will need some cash to get a CD loan. What
you will do is go to your bank and open a Certificate of Deposit. Then, you
will take out a loan that is secured by this CD. This is a great way to reestablish
an installment credit history.