Encountering a bankruptcy hurts your credit score badly, but “life after you” must go on. In an age your life is surrounded by credits, smart moves instantly will help you claim your halo back.
Firstly, a bankruptcy fulling on your credit report requires up to 10 years to be resolved. Improving credit score after bankruptcy is the only stable strategy and this process won’t change after a night, you need to be patient in any way. Hence, you can refer some of our new ways and tips.
Getting a credit card from local banks
Repairing credit score after bankruptcy could start with new credit. You have to acknowledge that it’s super hard for you to get a new credit card yet it’s also not impossible mission because when you achieve it after bankruptcy, you’d redeem the next lender’s faith on your credit as well as gain some FICO points.
Do not go to a desk in a big bank and apply a new credit card since you’ll have a very limited chance with them. My advice is to wait for a while after a tough time and switch to a local lenders which need more clients to compete with big names in the field. Of course, they won’t be easy to grant you a new credit but they may be more open-mind and give you a shoot for repairing credit score after bankruptcy and bankrupt filling isn’t the only factor in the credit world.
Creditors would classify you a high risky client than other applicants, offer a low credit limit and a big number in term of interest rate if you’d carry debts in month to month afterwards. But you use it in intention, it obviously helps your credit. Keep in mind that always PAY OFF all debt in proper time when accepting this offer.
Related story: What determines your credit score?
Clear your credit report from discharged debts
Basically, your discharged debts will disappear after a bankrupt request. However, mistakes always happen somehow and you need to declare them for your credit score protection.
Before applying any new loan or credit card, you have to check your credit report and make sure all information up to date. Well, 3 credit reporting agencies offers all applicants free copy of their credit report every year, you ask for yours. If you see accounts that should be cleared from your report because of the bankruptcy, contact this agency with proof to fix the error.
Strengthen your noncredit finance forces
Asking for a long term solution repairing credit score after bankruptcy? The first thinking should be working harder and getting new source of income. Credits are a tool bringing to you more convinence in daylife and also come with debt problem. The only way to keep you from bankruptcy again is to build a stable income and expand it more; manage your expenses and saving along the way. A balance of budgeting, saving and spending vs credits supports you after the dog days.
Try to answer these question: Do you have a grantful job? Can you support yourself? How can you expand your saving? Do you need a credit card or a loan now?
Repairing credit score after bankruptcy
This is the time to rebuild your credit again. Starting with a new credit card from local banks as above, you manage to shake up and shape your finance in months plan. Keep to pay off in time with certain credit card will help you 35% of new credit score and open new room after one year. One more tips you could miss is to open a secured credit card which is a backup amount in case you don’t pay your bills.
Wise men learns by their own mistakes.