5 Easy Steps To Rebuild Your Credit After Bankruptcy
By Cornie Herring
Bankruptcy often is the last ultimate solution for many debtors who have unbearable debts. With filing a bankruptcy, you will get rid of your debts instantly and relief you from the harassing call of your creditors.
Although bankruptcy has many undesirable consequences such as your bad record will remain on your report for 7-10 years, but with a little work, you can improve your even before these negative records expire. Here are five easy steps you can take to rebuild your credit.
Step 1: Get to know your current status The first step to rebuilding your is to look at exactly where you stand. Order all your three reports from those three national bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.
Print each report and review it closely. Try to understand the information listed in your reports and highlight any negative records or inaccuracies that are damaging your score.
Step 2: Check the expiration dates By law, your bad record will remain in your report for 7 to 10 years, but the exact expiry date might be different among these 3 reports. Your bad record will still remain at your report although you have pay off your old debts and discharge from bankruptcy.
Look up the exact date of each of bad records including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You will likely see a major improvement in your score when these records expire.
Step 3: Request For Correct On Any Inaccurate Records If you find inaccurate records, fraudulent accounts, or records that should have expired on you reports, you have the right to send a separate dispute letter to each of the bureaus to correct your Equifax, Experian, and TransUnion records. The bureaus will initial a 30 days investigation to see whether your requests are valid and if so, they will correct the inaccuracy in your report.
Just one note, don't try to dispute any of the positive information listed in your reports and it is a waste of time to attempt to dispute these records. Disputing positive information may actually harm your scores.
Step 4: Start to create good credits Since there is no way to remove your bad record from your report, the best way to improve your score is to add good credits and building up your from there. You can easy do this by open up a new card from banks like Orchard Bank (Orchard bank has card plan designed specially to help people rebuild their after bankruptcy).
Use this new card responsibly and make the monthly payment timely; with this you are building new history of good behavior on your report. Over time, you may want to open additional card accounts or obtain a loan to boost your score even higher.
Step 5: Monitor your progress Subscribe to a card monitoring service or get a card monitoring software and use it to track your score progress closely. Your score should improve steadily as you continue to use responsibly and add new
positive information to your reports.
Summary Bankruptcy does not need to chain you to bad for the next seven to ten years, but you have to be proactive in order to recover and rebuild your credit.
Article Source: http://www.articles-galore.com
Cornie Herring is the Author from StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics and debt consolidation.
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