As you may already know, the credit reports for each of Chapters 7, 11 and 12 will be kept for ten years from the filing date. Chapter 13 bankruptcy is declared for seven years from the date of filing. The accounts included in a bankruptcy will remain for seven years from the date indicated as included in the bankruptcy. Your ability to restore credit after bankruptcy is better than ever. Once your bankruptcy is paid, you will receive a large number of requests to finance homes, vehicles and credit cards.
Here are some of the steps to follow:
1. Review your credit report – The first thing to do is to get a copy of your credit records and make sure there is no error or accuracy.
2. Pay your bills on time, every time – Pay your bills and rent them on time all the time. Do not forget that your payment history is 35% of your credit score.
3. Bank account – Start with a current account or a savings account. Lenders can use this information to determine if you are currently responsible for finances.
4. Build with a store credit – Ask for store credit cards or a gas card. Use it for items for which you will normally pay in cash. As a result, your monthly balances will remain reasonable, making it easier to pay each month.
5. Secured credit cards – Ask for a secure card where you can deposit money and debit it. Pay the advances over two months so that they are considered positive points on your credit report.
6. Friends or family – Find a friend or family member who is willing to co-sign for you on a loan or add you to their credit report.
7. Find the right lenders – look for the best lenders to consider helping you even in bankruptcy.
8. Buying a car – If you buy a car, make sure it is a used car, so as not to suffer the depreciation that occurs during the first two years of a car purchase new.
9. Stay away from payday loans – Payday loans that come with high interest rates constitute a trap for "bad credit".
10. Be proactive – You often write a letter to each of the credit bureaus to explain the circumstances in which you initially went bankrupt.
One of the most important lessons to be learned in facing the challenges of bankruptcy is to be patient. Understand that the road to bankruptcy did not happen overnight. And the way to improve your credit will not be. By following the tips above, the way to improve your credit score is very possible. If you follow these 10 tips, you can improve your credit score and your life.