For many people going bankrupt might seem like it is the end of their lives. This is definitely not the case. It is true that once you go bankrupt, the report stays in your credit report for 10 years but it does not mean that you will be completely cut off from the financial world for that period of time. You may not be able to improve your credit instantly after bankruptcy but it is not impossible. Here we have a few tips on self credit repair after bankruptcy for your benefit.
If there is bankruptcy, then the best credit repair services will provide the best results. The checking of the report is essential for the individuals. There are instant reports available to the individuals. You should collect complete information about the services to have more benefits.
Do not avoid credit options
It is possible that after bankruptcy, people will start to fear credit and decide to go only for cash payments. Though it may sound like a safe option, it is not advisable to completely avoid the credit system. It is better to have a bad credit report with a few good reports than to have no credit background at all.
Open new credit line ASAP
It is of utmost importance that you open a new credit line immediately after your bankruptcy. Taking out a new loan, even a small one, and making the monthly payments consistently and on time will cause your credit score to increase. This is to replace the negative information on your credit report with positive ones.
Check accuracy of credit reports
Get a copy of the last 6-12 months of your credit report and see if there is any report that is inaccurate.
If there are any errors or false report, bring it to the attention of your lawyer for further investigation and rectification.
Get a Secured Visa Card
It is advisable to get a secured visa card to rebuild your credit because it uses your savings to place a deposit with Visa. Depending on your savings, they give you credit with a similar credit limit. Even though it is a secured visa card, it will show up on your credit report as a normal credit card.
Automatic payment of bills
One of the best methods to repair your credit after bankruptcy is to opt for automatic payment plans. This will help you avoid late payment of bills and thus improve your credit rating.
Get a small instalment loan
Let this be made clear that this loan is not meant for anything else but for credit repair after your bankruptcy. A mix of various small loans will help you in repairing your credit. Pay the loan instalments on time and keep in mind that this loan is not meant for your expenses.
Clear your bills on time
Remember to pay off your new debts on time, otherwise it will again go into your credit report and you will have to pay a higher rate on your current debts.
Self credit repair is the best way to improve your credit if you want to avoid high costs of credit repair companies. Moreover, not all credit repair companies can be trusted. If you keep in mind the above few suggestions we have for you, repairing your credit after bankruptcy will be a simple affair without much hassle since you are in control of the situation. Just remember not to fear credit because of your bankruptcy, start a new line of credit to help you improve your credit score and make timely payments on all your dues.