If you have recently filed, or are considering filing Chapter 7 bankruptcy, then you may be worried that you will never be in a position to attain credit again. Please be assured that restoring credit after bankruptcy is possible, I’m not saying it will be easy but it can be done.
Yeah, I know that Chapter 7 bankruptcy may legally stay on your credit report for 10 years but the way to view this is that you start rebuilding your credit history the day after your bankruptcy, try to forget about the 10 years, think more short-term. No more late bills! No more burying your head in the sand! No more missed re-payments!
You will find that credit is available, even to the recently bankrupt. One of the easiest ways is to apply for a secured credit card. This would be secured by depositing a sum of money into a deposit account (normally between 100% and 200% of the desired credit limit), so the credit card can be secured to that deposit account. Secured credit cards often have a lower interest rate than unsecured cards. It’s important to realise that you shouldn’t “max out” your credit card’s limit every month – use it regularly but for small transactions and pay it off in full every month. That way you improve your financial habits and the credit institutions start to recognize your improvements.
Another tip would be to ensure that your experian credit report is up to date. Very often these reports contain incorrect information, such as showing old accounts as being still open and overdue. If you haven’t done so already, get your credit report checked out and make sure you get any errors corrected.
It is vitally important to keep yourself in the “credit world”, but at the same time you must treat credit with the respect that it deserves. Keep self disciplined and pay your bills on time and in full. This way your credit score will start to improve and you will be well on your way to restoring your credit after bankruptcy.
Cliffardo Alfonso is a freelance article writer who lives in London, England with his wife and two children.
If you require further information on restoring credit after bankruptcy then visit his lens by clicking on the following link;
http://www.squidoo.com/restoringcreditafterbankruptcy
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