After Bankruptcy Credit Repair

Getting your finances in order is very important after your bankruptcy has been discharged. You are probably overwhelmed by where to start. One of the first things you should do is implement a comprehensive credit restoration program. With a few simple steps, you can have your credit score back on top in no time!

Clean Up Credit Report Errors credit repair

The first thing you need to do is request a copy of your credit report and review it carefully. There will probably be numerous accounts that were included in your bankruptcy that are reporting as open and currently past due.

You want to dispute these accounts with the credit bureaus. Disputes may be handled over the internet or throught the mail. Handling disputes through the mail is preferred as this provides you with the necessary paper trail should should you need to move on to more advanced credit repair tatics.

Reestablishing Credit

Once your credit report is cleaned up, it is time to begin reestablishing your credit history. A secured credit card is the perfect place to start! The credit card company will require a small deposit. They will then issue you a credit line against this deposit.

It is important to look for a company that reports your payments to all three credit bureaus. Avoid choosing a company that has very high fees. Look for a card that does not have an application fee and whose annual fee is less than $50.

Once you have a secured credit card, you should go to your bank and inquire about a CD loan. This is where you open a certificate of deposit with your bank and they give you an installment loan that is collateralized by this CD. Typically, you want to ensure that the term of your CD and the term of your loan are the same.

Most banks are willing to make these types of loans because they are fully collateralized in the event of default! This is a great way to reestablish installment credit history. Six to nine months after you open your CD loan and your secured credit card, you should be ready to apply for an unsecured credit card. Try to find a company that is in the business of working with people who have bad credit. Believe it or not, there are quite a few out there! By following these easy steps, you will be well on your way to credit restoration! credit repair