Credit repair after bankruptcy
Every year there are thousands of people all over U.S who file for bankruptcy. Filing bankruptcy leaves the person with a broken financial backbone and recovering from this loss and establishing credit again might seem to be a difficult task. However, rebuilding credit after bankruptcy is not as difficult as it seems to be. Though it takes time but it is nothing that is impossible.
Steps for credit repair after bankruptcy
There are certain things that you can do to start repairing your credit after bankruptcy. These steps are mentioned below. The first thing that you should do is get your credit report and do the credit check on your own. Usually you can get your credit report for free or by paying a nominal fee from any of the three credit reporting agencies.
Next you should start reviewing your credit report for errors or for negative comments. Any error on your credit report might include debts that you have already paid. You might also se that there might be negative comments that would have been reported by someone for a credit card that you might have stopped using long back and has a very small balance.
If you find that there are errors on your credit report then you should get in touch with the credit bureau immediately and offer them proof that you have already paid the money and do not owe anything. You should get a letter from the creditor mentioning that you have paid the pending balance and there is nothing remaining to be paid. Besides you can also provide cancelled checks. You can also consider writing a letter to the credit bureau explaining your part and your views and comments on your credit report.
If you have some high amount of debt mentioned on your credit report then you should consider paying them off soon. You should start paying off your debts with the highest mentioned amount. This is because the lower debts are easy to pay and when, less amount is remaining to be paid it can be easy for you to qualify for a loan.
If you are unable to pay off the debts then it is advised that you take the help of a debt counseling or credit repair or debt management agency who would help you in rebuilding your credit after bankruptcy. However, you should make sure that your counselor or debt management agency is licensed. You can also take the help of a credit repair lawyer who can guide you on how should you manage your debts and pay them off and start building credit.
Things that you can do to establish credit
Once that you have started paying off your debts and have managed to bring certain positive points in your credit report after the discharge of bankruptcy you can go ahead and apply for a loan or get a secured credit card. There are many lenders who provide bad credit loans and loans after bankruptcy. You should be prepared to pay a higher interest rate but also on the same hand make sure that the lender is not taking advantage of your situation. Once you have the loan then you can start paying off the monthly payments towards the loan on time. These payments are reported to the credit bureau and can help you in improving your credit situation.
However, before you take the loan after bankruptcy you should make sure that you would be able to meet with the payments towards the loan and would also be able to maintain your budget. It is important that you see whether your household income would be able to keep up with the payments towards the loan. You can also opt to take a secured credit card. These credit cards require you to deposit money prior to your using the credit card. Your limit for the credit card is the amount that is deposited in your credit card account. Gradually when you start making payments towards this credit card then it can result in improving your credit score. Once that your credit score starts improving then the credit card provider can offer you a normal credt card.
Credit repair agencies
If nothing works for you and you are unable to rebuild credit after bankruptcy then you should take the help of a credit repair agency . There are a number of agencies that you can contact. Some of these are mentioned below.
Credit Cleaners:
They help people improve their credit scores after having faced bankruptcy. They have been functioning since 1989 and have helped people improve their credit scores within a month or two. They charge you a minimal fee after which you can have access to their services. You can contact them at 24307 Magic Mtn Pkwy 106, Valencia, CA 91355 ; Toll Free: (800) 644-5363; Direct: (661) 286-1450; Fax 1: (650) 475-5655; Fax 2: (661) 244-4428.
Credit Info Center:
They offer credit-counseling services to people who have faced bankruptcy in the past. They charge $45/half hour consultation, $10 extra to review credit report (single or trimerged) during consultation, or dispute letters and $25/15 minute consultation, $10 extra to review credit report or dispute letters. You can call them at 1-877-933-6932 to get a consultation.
Sky Blue Credit:
They dispute issues of credit on your behalf and help you improve your credit score after bankruptcy. Regardless of the fact whether you have faced bankruptcy or are a bad credit candidate they can help you in improving your credit. You can contact them at Sky Blue Credit Repair Services ; 131 North Swinton Avenue; Delray Beach, FL 33444; phone: (800) 790-0445.
Vitesse Financial:
They help you in improving your credit score. They are credit repair specialists and have been helping people over the years to rebuild credit after bankruptcy. You can contact them at phone: 866-407-9110; 970-407-9110; fax: 970-407-9172.
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