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Credit Repair Tips After Bankruptcy
When The Time Is Right
Building up a mountain of debt can certainly be dangerous not only because of how costly it can get for the individual but also because of how difficult it can be to ever get out of debt. For many, credit card debt can seem like a never-ending tunnel that will never comes to light. Prior to deciding to file for bankruptcy one should exhaust all other options because bankruptcy should not be taken lightly. It not only affects your finances but it can also affect your credit score. Bankruptcy can remain on your credit report for up to ten years, not to mention your FICO score will be low as a result. Luckily there are certain ways to help you get back on your feet financially after all the bankruptcy dust has settled. Let’s take a closer look at some of the best ways to increase your credit score.
Follow The Rules
Part of the reason that you got yourself into trouble in the first place was failure to abide by the standard credit card rules. These rules exist for a reason and following them as closely as possible is a guaranteed way to help increase your FICO score as well as positively helping your overall credit score. To start fresh after bankruptcy you should first request credit reports from all the major credit companies. These reports are free of charge and will allow you to see what your current score is immediately following your bankruptcy. Once you’re aware of your starting score, you should realize that it will take some time for you to recover and get to where you want to be.
Since payment history makes up 35% of your credit score, it’s vital that you pay your bills on time. Consistent payment over time will show that you are responsible with a credit card and can only be beneficial in the long run. It’s not necessary for you to use the same card that you had before you filed for bankruptcy, in fact it is even recommended to apply for a new card. Just don’t apply for too many cards or this will reflect negatively.
Keep Accounts Open
There really is no excuse when it comes to maintaining a healthy credit card balance. It is your responsibility to know how many credit cards you have, when they are due and what the spending thresholds are. After bankruptcy you should keep your balances low and pay them off as much as possible. It’s also recommended to keep all of your accounts open, even the ones that existed prior to the bankruptcy. Closing accounts will do more damage to your credit since it reduces the amount of credit that you have available.
The road to recovery after bankruptcy is not something that will happen overnight. It’s something that takes time and requires some perseverance, dedication and commitment. It really should not be too difficult to get your credit score in good standing order as long as you follow the standard rules. If you’re tempted to spend, cut up some of your credit cards since rapid spending is what got you into the bankruptcy mess in the first place. A cut up credit card is much better than racking up your debt! It is also a good idea to reach out to a credit repair service who are experts in helping you guide your way back to a good credit score.