Top Tips for Credit Repair After Bankruptcy

Filing for bankruptcy is not the easiest thing to go through. It damages the financial life of an individual or a business in many ways. Although the credit score is tainted immediately, it is not going to remain like this forever especially if you have the right tips to rebuild it. We have researched thoroughly and come up with the tips below, with the help of AC Waring, that will be invaluable for any person who is struggling to build credit after bankruptcy.

Check Your Credit Score Regularly

Before you can make any other plans, it is crucial to know how you are faring at the moment. Therefore, says Finance Fox, the first step is to obtain your credit report from the relevant credit bureaus. In fact, this should be a regular habit. Check with the credit bureaus to know how many free reports they give and how much they charge for any additional report. The habit of getting your report will open the door for better planning on the next tips that we will share.

Pay Non-Bankruptcy Accounts on Time

If there are any accounts that are left out when filing for bankruptcy for some reasons, it is good to plan for their payment in a timely manner. According to many financial experts, some accounts cannot be discharged together with others. These will continue affecting your credit score either positively or negatively depending on how you are handling them. Make sure that they are paid on time so that your credit score will keep growing instead of stagnating.

Piggyback on an Account That Is Performing Well

Yes, you can piggyback on an active and performing account. Nowadays, buying tradelines is very easy and straightforward. There are many companies that are willing to connect you with people who have tradelines that are performing well. Once you are added as an authorized user, the growth journey for your account will start. This is an exceptional solution as long as you choose an account that will take your score to the next level.

Open a Credit Account

Having another credit account will increase the opportunity for you or your business to grow a credit score. Choose lenders who are flexible in giving credit cards to people who have filed for bankruptcy. Fortunately, such lenders are common today. However, you have to promise that you will pay for this credit card in a timely way. The secret for boosting your credit drastically is in maintaining a low credit balance and paying it off in a timely manner.

Ask the Remaining Lenders to Report

Now that you have very limited options to grow your account, it is time to urge the remaining lenders to report the positive performance to the credit bureaus frequently. And this is where checking your report regularly comes in handy. If there is any dispute, you can raise it with the relevant conflict resolution as soon as possible. Being on top of every detail will see a consistent and gradual growth in your credit score.

As you can see, the post-bankruptcy financial journey is difficult, but there are many practical solutions for growing your credit score. Follow them today to succeed.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.