One of the best points about getting a fresh start on your credit by filing for bankruptcy is that it gives you a good chance to rebuild your future credit rating. Nevertheless, it is important that I tell you that your credit rating won't get better as long as all your old, negative information is still listed with credit reporting agencies, which as I said before can last for up to 5 years.
All three major credit reporting agencies have knowledge of you and your debts before you even decide to file for bankruptcy. This information takes into account late payments, charge-offs and judgments that might’ve been made against you. After your discharge, all these debts should be mentioned on your credit report as "Included in BK." If they aren’t listed in that way, they will appear to still be active accounts in collection status, which could severely change your credit chances.
Regrettably, creditors don’t often report updates in credit records after a bankruptcy discharge. A couple of months following your discharge, you should take sufficient time to order credit reports in order for you to make sure that all your discharged debts are listed as being included in your bankruptcy.
These three major credit reporting agencies can be contacted for your accurate credit report:
Trans Union (800) 888-4213 http://www.transunion.com/
Equifax (888) 397-3742 http://www.equifax.com/
Experian (800) 997-2493 http://www.experian.com/
Here are a few more things that you can do to get your credit back in order following bankruptcy; these things are:
Giving Yourself Credit:
The best method for you to rebuild your credit following a bankruptcy is to establish credit accounts that will put forward positive information on you. You will have to get a single credit card with a small credit limit, use it rarely and pay the entire balance every month before the date is due. This won’t work if you pay only minimum balances.
Read the Contract Small Print:
After your discharge, you will likely get a few offers for credit cards as well as other loans very fast. You’ll need to know what you will be getting yourself into before you accept these offers. Make sure that you completely understand the interest rate, any other fees and the expected monthly payments before you decide to open a new credit account. You must think that credit card companies can offer anything to get you hooked, nevertheless many of the great offers are only introductory and might double your payments later on.
Being able to prove Your Payments:
You might need proof that you don't owe these creditors, even after your debts are discharged through bankruptcy, before you can establish yourself again. Keep a few copies of your discharge papers from the court so that you can prove certain debts were discharged if you do need to in the future. This will considerably facilitate your job in the end.
Making all of your payment on time:
The majority of credit card companies and utilities report late payments to credit reporting agencies. If your payments are late every month, future creditors will always see you as a bad credit risk. Further, you should bear in mind that most credit cards add a late fee whenever you are late with a payment, which will only make your payments higher. You will have to try to avoid paying late by paying your accounts in full on or before the date it is due.
Click to the next page of our guide on how to successfully recover from bankruptcy: Bankruptcy Advantages
