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Becoming Credit Worthy After A Bankruptcy

Becoming Credit Worthy After A Bankruptcy
"""Obtain your bankruptcy discharge documents from the courts as the first step. Then, obtain a copy of your most recent credit report from Trans Union, Equifax, and Experian. Now that you have these reports, you can compare them to the discharged debts manifest from your bankruptcy. Examine each entry on your credit report to ensure the balance is $0.00 and the account is labeled ""included in bankruptcy."" As you continue reviewing your credit report, you will observe that some accounts are duplicated. There may be accounts with a collection agency that represent one of your original creditors. Similarly, these accounts must be addressed in the same manner. Accounts that were not discharged in your bankruptcy should be the only ones displaying a balance. These accounts would typically include a reaffirmed mortgage, auto loan, student loan, or other obligation. If discharged accounts still reflect a balance on your credit reports, you must send a dispute letter to the credit bureaus. As evidence that the accounts in dispute were included in your bankruptcy discharge, you should include a copy of the court discharge and schedule documents along with a detailed inventory of the accounts in dispute in your dispute letter.

Once all of your accounts are accurately reporting to the credit bureaus, you can begin to rebuild your credit. Please keep in mind that timely monthly payment of all reaffirmed debts is crucial. This is the start of your second opportunity; do not squander it by making late or missing payments. This would be disastrous for your efforts to rehabilitate your credit.

Now that you are on time with your reaffirmed obligations and your credit reports are accurate, you can begin to rehabilitate your credit by opening a new account. Capital One, Orchard Bank, and Fingerhut are typically willing to give you a second opportunity with an unsecured credit card if you have filed for bankruptcy. You may not receive the same credit limits as before your bankruptcy, but this is a solid start. You may also discover that you cannot obtain an unsecured line of credit immediately, but that's fine. There are numerous options for secured credit cards. After a period of on-time payments, secured credit cards are sometimes converted to unsecured cards. When researching secured credit card options, verify that the issuer reports to all three credit bureaus on a monthly basis. You want your efforts to be documented. Check with your credit union to see if they offer a secured card program. Credit unions are known for having the lowest interest rates and fees, so this would be your best option.

Now that you have your new account, it is time to demonstrate your financial responsibility to your current and future credit grantors. If you follow these three easy steps, you will have credit in no time.

Pay your monthly bills on time every month.

Never sustain a balance that exceeds 30 percent of your credit limit. For instance, if your credit limit is $500, your balance should not exceed $150.

Only apply for fresh credit once every six to twelve months.""

" - https://www.affordablecebu.com/
 

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"Becoming Credit Worthy After A Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 110 times and generated 0 comments. The article was created on and updated on 31 May 2023.
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