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Tips to Rebuild Your Credit After Bankruptcy

How to Reuild your Credit After Filing for Bankruptcy

The fact that you filed a bankruptcy case will remain on your credit report for 8 to 10 years, however, that does not mean that your credit score will be aweful. In fact, most creditors don't care if there is a bankruptcy on your credit report, as long as you show that you are on the right path after bankruptcy. In most cases, bankruptcy will actualy improve your credit score because it will remove all negative comments from negatively reporting accounts, and will substantially improve your debt to income ratio.

It is important to check on your credit often after bankruptcy. If you see accounts that are not reporting correctly, it is very easy to dispute the bad reporting. There are a number of forms that you can download and send to the agencies. A good example of a form that can be easily filled out and sent to all three credit reporting agencies can be found here:f

1. Get a new credit card and keep a small balance.

Getting a new credit card, and keeping a small balance will do a lot for your credit score. Make sure to make more than the minimum payment, and alwasy have available credit. Do not use more than 30% of your credit line. This will show creditors that while you have credit available to you, you do not use all of it, and that you make more than the minimum payments.

2. Get a secured credit card.

Getting a secured credit card is one of the easiest ways to start establishing credit if you don't want to take out a traditional credit card. It is suggested to make strategic purchases with your secured credit card, and to never go over 30% of your credit line.

3. Get a small loan.

A small and preferably secure loan will diversify your credit portfolio. Again, make more than minimum payments and pay off the loan sooner than agreed. Do not be tempted to take out a bigger loan. This will worry creditors. A lot of credit rebuilding is showing that you have available credit but are not using it.

Credit recovery happens faster than you think.

If you are responsible, you will find that your credit score will recover a lot faster than you ever thought. Making on time payments and not using your available credit will show creditors that you are a responsible borrower. As your credit improves and you are offered more and more lines of credit, it is important to still follow these guildelines.

If you have any questions about credit reporting or how to restablish your credit after bankruptcy, pleaes don't hesitate to call our office. 480-355-1377, or fill out our form here: We are an experienced team of bankruptcy lawyers and are here to help you get a fresh start.