If you have a recently discharged bankruptcy, you are probably wondering what you need to do to get your life back on track. One of the key things you need to do is begin after bankruptcy credit repair. People tend to put this off, thinking they will just stay from credit for a while. While being careful with credit and not falling into old habits is a good idea, the reality is that you should begin credit restoration just as soon as you possibly can. Why? Because bad credit is expensive and impacts more than just your ability to buy a new car! It can also prevent you from getting a job or even certain types of insurance. Let’s take a look at how you can get started today!
You may be surprised just how bad your credit report looks!
The first step to repairing credit after a bankruptcy is often forgotten. The first thing you need to do is get a copy of your credit report. This is a critical step that should not be forgotten. Why is it so important? Most likely, at least one account that you included in your bankruptcy is not reporting accurately. Instead, they are reporting the account as being open and currently past due. This is a disaster when it comes to getting new credit because creditors will assume that the account was not included in your bankruptcy and that you have derogatory credit after the bankruptcy. It will cause your credit score to be lower. You will need to dispute each account that is not reporting correctly with the three credit bureaus. It’s a good idea to include a copy of your bankruptcy discharge and schedule showing that the account was included with your dispute.
Two easy ways to reestablish credit
You may think that there is no point in trying to get credit right after your bankruptcy has been discharged. After all, who would lend to you? The reality is that getting credit right after a bankruptcy is not that difficult – The key is knowing were to seek credit.
Secured Credit Cards
The easiest way to start reestablishing credit is to get a secured credit card. You will need to place a small deposit with the credit card company and they will issue you a credit line in the amount of that deposit. When deciding which company to go with, a key factor is whether they report to all of the credit bureaus!
Like a secured credit card, you will need some cash to get a CD loan. What you will do is go to your bank and open a Certificate of Deposit. Then, you will take out a loan that is secured by this CD. This is a great way to reestablish an installment credit history.
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