How to rebuild your credit score after bankruptcy?

The most important concern that bothers a bankruptcy filer is their credit rating. Bankruptcy remains on your credit report for about 7 to 10 years (depending on the kind of bankruptcy you file) and harms your credit worthiness to a great extent. While such repercussions can give you a real cause for worry, you must also keep in mind that bankruptcy is not the end of your financial life. You can still rebuild your credit rating after facing a bankruptcy. All you need is a bit of discipline and to make some wise financial moves.

If you have faced bankruptcy lately and want to work on your credit score improvement, then here is what you can do:

1. Get your current credit report

The first step towards rebuilding your credit report is to learn where you stand exactly, so you can work on improving your credit report accordingly. Get hold of your credit reports from all the major national credit bureaus. You can either order them or get your reports online and then take a close look at them. Scrutinize each and every listing on the report and then focus on any negative listings that are hurting your credit score.

2. Tally the expiration dates

According to bankruptcy law, the record of your bankruptcy filing will continue to appear on your credit report for 7 to 10 years even after your debts have been paid off or discharged through bankruptcy. But the exact expiration date might not be same on all of the credit reports that you have ordered from the credit bureaus. This might happen with other listings on the report as well. So find out the exact expiration dates for each of the bad listings including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You can expect a major improvement in your credit score after these negative listings expire.

3. Request correction of inaccurate listings

If you discover any inaccurate or fraudulent listings on your credit, then under the Fair Credit Reporting Act, you have the right to get the listings corrected. You can send letters to the credit bureaus and ask them to verify the listings on your report and get them corrected accordingly. After receiving your request letter, the bureaus will initiate a 30 day investigation of the alleged inaccurate listings in order to verify them. If the bureaus find any incorrect information on your report, they will rectify it. But do not dispute any positive information listed on your report; otherwise you may end up damaging your credit rating.

4. Use your credit responsibly

There may be no way you can remove your bad credit listings. If you can't, the best thing you can do is start adding good credit listings to your credit score after bankruptcy. You can begin by opening a new credit card account with a financial institution that offers credit card plans designed specifically to help consumers improve their credit scores after bankruptcy. You should use this account responsibly and make all you payments on time. Wise and responsible handling of your account will help you gain a good credit rating. Make sure you maintain responsible behavior towards all your credit accounts in future so your credit scores increase.

5. Track your developments

Responsible use of credit is not only about making timely payments, but also about tracking developments in your credit rating. You can do that by enrolling in a credit monitoring service or get a credit monitoring software to monitor improvements in your credit rating. You can expect steady improvement in your credit report with the responsible use of credit over time.

Bankruptcy is a financial disaster that can hit any one of us. But there is nothing to feel shattered and hysterical about if you need to file for bankruptcy. If you resolve to be financially responsible after bankruptcy, then reshaping your credit worthiness will not be a big deal. After all, bankruptcy is meant to give you a fresh start!

Additional Resources

• Chapter 7 Vs Chapter 13
• Recent Changes to Bankruptcy Law
• How to File Bankruptcy
• Bankruptcy Filing Fees
• The Automatic Stay
• The 341-Meeting
• How to rebuild your credit score after bankruptcy?

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