While bankruptcy can provide you with a substantial debt relief, it can also potentially have a negative impact on your credit score. Bankruptcy will often stay on your credit report for a long time, up to ten years. This is as opposed to your credit, which often does not stay for that long. However, you can take measures to Credit Repair After Bankruptcy. Having a good credit score and credit report is important because it often plays a significant role in getting certain types of jobs, renting an apartment and financing a vehicle purchase among other activities.
Perhaps you are wondering what you can do to speed up your credit recovery after bankruptcy. To begin with, it is essential that you commence payments on your debts. It is likely that your creditors will report your efforts to make payments to the credit reporting agencies. Subsequently, the agencies will list your payment history on your credit report, demonstrating that you are a responsible debtor to potential creditors.
You may also achieve an effective Credit Repair After Bankruptcy by using debts that survived your bankruptcy, including student loans, mortgage loans and car loans. Making prompt and full payments on these loans will increase your credit score; building a positive picture of yourself as a borrower.
You may also elect to use your credit wisely. Ensure that you don’t spend more than you can afford. Determine the amount you can comfortably afford to pay on your debt every month after paying all the necessary expenses. Moreover, never borrow what you cannot afford to pay back; your budget should essentially dictate what you can comfortably afford without straining your resources to be able to pay back the debt when due.
In addition, you can utilize automatic payments to ensure that you miss none of them. Automatic payments allow your bank to deduct payments directly from your bank account monthly when they fall due. It is easy to forget making payments if you don’t set up automatic payments.
More importantly, you should note that law entitles you to a single credit report annually from the reporting bureaus. You may request for an online review to ensure that they are accurate. In the event that you find any incorrect items, you have a right to file a dispute with the credit reporting agency. Contact Law Margulies for this and more information on Credit Repair After Bankruptcy.