How bad does bankruptcy affect my credit score?

How bad does bankruptcy affect my credit score?

Bankruptcy will always be the most negative thing on a credit report. It will have a major impact on your score but it can be offset by what is left on your credit report. It is important that you work to correct what is on your credit report and what caused you to file bankruptcy.

The number of accounts included in your bankruptcy will also cause greater damage. The bankruptcy can be listed on your credit report for up to 10 years. Each account that you have listed in the bankruptcy can also be reported on your credit report. Those items should also show that they were included in the bankruptcy. Many times those accounts don’t get updated so they show that they were charged off or maybe even in collections. You will need to dispute them to get them to report accurately. It may also take several disputes to get that corrected.

It is critical that if you have filed bankruptcy recently, then you should begin to rebuild your credit as soon as possible. Start by opening a small credit account (secure account if necessary) and build your credit. Only apply for credit that you need and don’t open too many accounts.

Do credit repair on your credit history on anything that is not reporting accurately. Then keep up all accounts by paying them on time and in full. This will help rebuild your credit and you will see your credit score rise as those bad accounts get older and older.

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