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4 Tips on Rebuilding Credit Rating after Bankruptcy

bankruptcy

by | Apr 6, 2022 | LEGAL TIPS

4 Tips on Rebuilding Credit Rating after Bankruptcy

Taking the correct steps to rebuild your credit rating after bankruptcy is going to be a serious key to your success. Here are 4 tips to help you rebuild your credit after bankruptcy.

Consider Secured Credit Cards
Most banks offer a secured card to assist customers build or rebuild their credit rating. Once a credit card is issued, you will make monthly payments and pay interest on purchases. Your payment history will be reported to the credit agencies. Your on-time payments will help rebuild your credit.

You can stay on-top of your payments by:
Enrolling in auto-payments
Set reminders on payments and due date
Keep track together with your income, expenses and bills in one calendar

Reaffirming Debts
If you have any existing debts outside your bankruptcy file, use it on your advantage. Apart from applying for and obtaining new loans and credit cards, you’ve got what you need to add excellent information to your credit reports. If you continue to make payments on time after bankruptcy, the creditors continue to report the payments to the credit agencies.

Be an Authorized User
An authorized user is someone who is allowed to use someone else’s credit card. The person who owns the credit account is called the primary cardholder.

Authorized users may be issued their own credit card with their name on it, but the account belongs to the primary cardholder.

Authorized users can make purchases on the account, but generally cannot make changes to the account itself — like increasing the credit limit or adding more authorized users.

This is an excellent strategy to quickly boost your credit score. But the negative side to this strategy is that your credit can also be damaged if the primary cardholder makes late payments on the account or becomes delinquent.

Repair Your Credit
Check your bank about any error credit reports.Even one falsely reported late payment on an account can significantly lower your scores. Check your credit report regularly and keep track of your finances. Sometimes contacting the creditor about the error can quickly resolve the mistake.

 

Final Thoughts

Take it all slow. If you are rushing your credits, you could end up making a mistake that will just delay your credit repair progress. One payment at a time. Charge what you can afford and pay off every month. It might take a few years, but you can eventually regain an excellent credit score.

By: MarkAdmin

By: MarkAdmin

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