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How to build good credit after bankruptcy
By | February 15, 2008
For most people bankruptcy is the last option when they have unpayable debts. This is because even though bankruptcy wipes off all your debts and relieves you from creditors, it does have an effect on your credit record. A bankruptcy usually shows up on a credit record for around 8-10 years after filing for bankruptcy. However there are a few things one can do to improve your credit even while the black mark of bankruptcy still remains.
The first thing you should do is to apprise yourself of your credit status. This you can do by asking for your credit report from all the major national credit bureaus. Peruse them all carefully and this will give you a good idea of where exactly you stand.
In case you find any errors or inaccuracies on any of these reports you should send a letter disputing the fact to each of the credit bureaus from where you obtained your credit report. They will then investigate for 30 days and if your claims are found to be correct, appropriate corrections will be made.
Once you know what your situation is you should try to build a good credit record. Since there is no way you can erase your bad credit record, you should try by adding good credits and building up your record.
Another very essential thing to do is to have your progress monitored. For this you can get a credit card monitoring software and this can be used to track your credit scores and as you continue to behave in a responsible manner, your credit score shall continue to improve.
Bankruptcy doesn’t necessary mean that you shall have a bad credit record all your life, but you need to take active steps to improve your credit record and better your financial future.
Topics: Bankruptcy Protection, Credit Effects |
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