How do you repair credit after a bankruptcy?

Think about these 5 tips for credit repair after bankruptcy.


One may try to sit back and do nothing about an after bankruptcy credit repair since the argument is always that the bankruptcy remains on one’s file anyhow for 10 years. What’s the point then of doing an after bankruptcy credit repair?

Bankruptcy is a word which no person desires to have to experience in a personal way in their own mature lives. For those people who do declare themselves bankrupt, they generally do it since they had run out of other choices. Someone’s reasons for having to declare themselves bankrupt may differ significantly, from losing a career to having medical issues to simply running up too much debts without being able to pay it down.

One of the things that the one who has announced bankruptcy normally wonders is just how much this course of action can have a poor impact on their long term credit rating.

After all, your credit rating is one of the most important things that decides the kind of financial loans or charge cards that you may be eligible for.

If you want help with credit repair after a bankruptcy, listed below are 5 suggestions that will help you repair your credit more quickly:

1. A bankruptcy can remain on your FICO report for a long time:

Needless to say that declaring bankruptcy may cause your credit score to instantly fall. And, it can stay on your credit history for 10 years.

2. You need to really be more creditworthy after your bankruptcy compared to what you had been before:

If you think about this, you are really more creditworthy just after your own bankruptcy release than you were in advance: in the end, you now have the monkey (your debt) off your back and you have more means compared to what you had before to repay what you owe.

3. After the discharge, each financial debt you borrowed from needs to return to 0 dollars on your credit history:

After your discharge, you’ve the right (confirmed by government law) to have the total amount of each debt that’s been released to show as $0 on your credit history. In fact, you possess the right to claim any cards that still present your old account balances.

4. You could in some instances maintain credit cards after bankruptcy:

The truth is, it is possible to retain one or more of your old (pre-bankruptcy) charge cards after your discharge. To do so, you’ll want to “reaffirm” the balance with them and start a new agreement. Many collectors will agree to get this done simply because they prefer to not need to have the loss.

5. You can purchase a home just after bankruptcy:

You can buy a house after announcing bankruptcy. Inside of 1.5 to 2 years after your release, a lot of people consistently can easily be eligible for a financial loan with similar loan terms as they could have if they hadn’t filed.

What’s vital at this stage is your earnings, your advance payment, and just how consistently you paid your mortgage (or rent) previously.