Bankruptcy Credit Card - your questions answered right here...
More About Bankruptcy Credit Card...
You've made it through filing bankruptcy. Now, you believe your finances should be in order and you can start with a clean slate. Well, it ain't necessarily so. Your bankruptcy is noted on your credit report from seven to ten years, depending on the chapter you filed.
Although you can find any number of companies that offer to erase bad credit or remove bankruptcy from your credit history, it's not true. For information about credit repair scams, check Federal Trade Commission website for information. Only your conscientious effort to pay your bills on time and a record of debt repayment can improve you credit report after filing bankruptcy. No one can legally remove true and timely information from a credit report.
Using the do-it-yourself method, the first step in repairing you credit is to review your credit reports for errors. After the bankruptcy discharge you are entitled to have the balance of debts discharged under bankruptcy reported. Your history of late payment can be kept, but the balance must be zero. If it's not shown that way, dispute the debt.
The three nationwide credit reporting companies are Equifax, Experian, and TransUnion. These companies are required by federal law to provide you with a free credit report once every twelve months. Also, if you are turned down for a loan, you are allowed to review the credit report used in evaluating your loan at no charge.
Once your credit report is in order, get credit. Credit card companies decide whether you can keep your card after filing bankruptcy. Even if the balance is zero, the company might cancel your card. If you are discharging the debt under bankruptcy, they will cancel the card unless you reaffirm that you will make payments. A major credit card you keep through bankruptcy will help rebuild your credit rating. Be sure you use it for amounts you can handle and pay the monthly bill on time.
You will probably get many offers for credit cards after you file bankruptcy because the companies know you can't file bankruptcy again for several years. Avoid these cards because they generally have high interest rates and big penalties for late payment.
If you don't have a major credit card, start building credit by getting a secured credit card. With a secured card, you make a deposit at a bank. The deposit earns a bit of interest and your credit line is the amount in your account. Use this card frequently in amounts you can pay off every month. With time, your credit limit will increase as you prove your ability to pay.
Another way to build credit after bankruptcy is to pay your home loan mortgage in full and on time every month. If you rent, be sure to make your payments in full and on time.
There are no quick, easy fixes to your credit rating after filing bankruptcy no matter what somebody tells you. Bankruptcy does remain in your credit history for years, but by handling your debts wisely and with patience, you can rebuild your credit rating; but nobody can do it for you.
There are no quick, easy fixes to your credit rating after filing bankruptcy no matter what somebody tells you. Bankruptcy does remain in your credit history for years, but by handling your debts wisely and with patience, you can rebuild your credit rating; but nobody can do it for you.
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