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Five Tips for Credit Repair After Bankruptcy

Five Tips for Credit Repair After Bankruptcy
"""Bankruptcy is a word that nobody wishes to personally experience in their adult lives. Those who declare bankruptcy typically do so because they have exhausted all other options. The reasons a person must declare bankruptcy can vary significantly, ranging from job loss to health problems to accumulating too much debt without the ability to repay it.

One of the questions that naturally arises for a person who has declared bankruptcy is how much this action will affect their future credit score. Ultimately, your credit score is one of the most influential factors in determining the types of loans and credit cards for which you qualify.

If you are interested in credit repair assistance after a bankruptcy, the following five guidelines can help you repair your credit more quickly:

A bankruptcy can stay on your FICO report for an extended period of time:

It goes without saying that declaring bankruptcy can precipitously lower your credit score. In addition, it can remain on your credit report for a decade.

Actually, you should be more creditworthy after filing for bankruptcy than before:

If you think about it, you are actually MORE creditworthy after your bankruptcy discharge than you were before: you no longer have the monkey (your debt) on your back and you have more money to pay your expenses than you did before.

3. Following the discharge, all of your debts should return to $0 on your credit report:

You have the right (guaranteed by federal law) to have the balance of each discharged debt appear as $0 on your credit report after your discharge. In fact, you have the option to dispute any cards with outstanding balances.

In some instances, you can retain your credit card after bankruptcy:

After your discharge, you can actually retain one or more of your former (pre-bankruptcy) credit cards. To accomplish this, you must """"reaffirm"""" the balance with them and enter into a new contract. The majority of creditors will consent to this because they prefer to avoid loss.

You can purchase a home after filing for bankruptcy:

You can purchase a residence after filing for bankruptcy. Within one and a half to two years after their discharge, many individuals can qualify for a loan with the same terms as if they had not filed for bankruptcy. At this stage, your income, your down payment, and your history of consistent mortgage (or rent) payments are crucial.

Consider these five credit repair strategies following bankruptcy.

" - https://www.affordablecebu.com/
 

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"Five Tips for Credit Repair After Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 125 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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