You Can Recover From Bankruptcy Fast
Bankruptcy can be a hard experience, no doubt. But, as uncomfortable as it is, once it is done, recovery can be accelerated by putting a few select credit repair techniques to work. In fact, there is no more important or beneficial time for credit repair. What is done is done. Now it is time to regroup, rebuild, and restore your good credit rating. You can do it!
Starting With Your Credit Reports
The first step in the credit repair process after bankruptcy must be a thorough examination of your credit report. All of the items that were included and discharged in the process should have a modified, tidy, appearance. Any accounts that were reported as past due or in a collection status should have this information removed, and the accounts should be reporting simply as having been included in bankruptcy.
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Working With the Credit Bureaus
If you used an attorney for your bankruptcy, as most people do, they may have sent notification of your bankruptcy to the credit bureaus with a request for post-discharge modification. This is a great first step in the credit repair process, but unfortunately, the credit bureaus are not great at doing things the first time they are asked. It is up to you to make sure the job is done.
Patience May Be Required
It is as simple as sending letters to each of the bureaus, along with a copy of your discharge. Monitor the results carefully. You should expect that some follow up will be required. Your credit repair effort requires patience, especially when dealing with the credit bureaus. But keep a cool head a resend your requests until the job is done.
Entering the Rebuild Stage
Once the cleanup is done it is time to rebuild. It is one thing to make your credit report look nice, and another thing to get your credit scores to improve after a bankruptcy. It is not hard, but it does take a little work. The best way to rebuild is with secured credit cards. They are cheap and easy to get. You will not get denied, and they will do wonders for your scores.
The Power of New
Rebuilding your credit with new credit cards is advisable even if some of your credit cards survived the ordeal intact. The FICO scoring model will give you an enormous boost just for demonstrating that you have what it takes to get back in action, to open new accounts, and to manage them in a wise and prudent manner. If you still have old accounts, keep them alive, but there is nothing that will serve you at this time like new accounts.
Your Payments and Your Balances
Once you have your new accounts open, you need to manage them in a special way for the best credit repair results. You know that you must make your payments on time, but it is equally important to keep your balances in a certain range. FICO reacts to the percentage of the card limit that you utilize. The best results will come from using less than 20 percent of the limit on each card.
What to Expect
Here is a handy caveat. Do not postpone opening your new accounts. New credit cards will take 6 months of reporting time to deliver a significant score benefit. Two new cards can raise your scores over 100 points after 6 months of reporting. Your post bankruptcy credit repair will put you back in control of your credit. Your credit report will look tidy, and there is no reason that your scores cannot be in the 700 range within 9 months of your discharge. No too shabby!
Copyright © 2010 James W. Kemish. All Content. All Rights Reserved.
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