Bankruptcy often is the last ultimate solution for many debtors who have unbearable debts. With filing a bankruptcy, you will get rid of your debts instantly and relief you from the harassing call of your creditors.
Although bankruptcy has many undesirable consequences such as your bad credit record will remain on your credit report for 7-10 years, but with a little work, you can improve your credit even before these negative records expire. Here are five easy steps you can take to rebuild your credit.
Step 1: Get to know your current credit status
The first step to rebuilding your credit is to look at exactly where you stand. Order all your three credit reports from those three national credit bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.
Print each report and review it closely. Try to understand the information listed in your credit reports and highlight any negative records or inaccuracies that are damaging your credit score.
Step 2: Check the expiration dates
By law, your bad credit record will remain in your credit report for 7 to 10 years, but the exact expiry date might be different among these 3 reports. Your bad record will still remain at your credit report although you have pay off your old debts and discharge from bankruptcy.
Look up the exact date of each of bad records including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You will likely see a major improvement in your credit score when these records expire.
Step 3: Request For Correct On Any Inaccurate Records
If you find inaccurate records, fraudulent accounts, or records that should have expired on you credit reports, you have the right to send a separate dispute letter to each of the credit bureaus to correct your Equifax, Experian, and TransUnion records. The bureaus will initial a 30 days investigation to see whether your requests are valid and if so, they will correct the inaccuracy in your credit report.
Just one note, don't try to dispute any of the positive information listed in your credit reports and it is a waste of time to attempt to dispute these records. Disputing positive information may actually harm your credit scores.
Step 4: Start to create good credits
Since there is no way to remove your bad record from your credit report, the best way to improve your credit score is to add good credits and building up your credit from there. You can easy do this by open up a new credit card from banks like Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy).
Use this new credit card responsibly and make the monthly payment timely; with this you are building new history of good credit behavior on your credit report. Over time, you may want to open additional credit card accounts or obtain a loan to boost your credit score even higher.
Step 5: Monitor your progress
Subscribe to a credit card monitoring service or get a credit card monitoring software and use it to track your credit score progress closely. Your credit score should improve steadily as you continue to use credit responsibly and add new positive information to your credit reports.
Summary
Bankruptcy does not need to chain you to bad credit for the next seven to ten years, but you have to be proactive in order to recover and rebuild your credit.
Related Articles
Recover From Bankruptcy With a Mortgage Refinance Loan
By: Devora Witts | 11/06/2008 | Loans
If you have gone through a bankruptcy, you are probably having problems getting finance and not being able to get finance when almost everything in commerce is based on credit, can turn out to be very stressful. Nevertheless, if you are a homeowner, you can get finance by refinancing your home loan while at the same time helping you raise your credit score.
How Do I Improve My Credit Score After Bankruptcy?
By: S. Michael Windsor | 01/03/2008 | Credit
There are, In essence, two ways a person can file for bankruptcy and those two ways consist of getting rid of all the debt completely or paying some of it back. Chapter 7 bankruptcy is where nothing is repaid and Chapter 13 is where some is repaid. Either way a person looks at it, bankruptcy will impact a credit score quite negatively.
Good Credit Can Keep You Out of Debt
By: Christina Costa | 03/06/2008 | Credit
If you are looking for debt relief, a good place to start is with your credit. Focus on paying off your debts, improving your credit score and having a positive financial future!
The Best Ways to Rebuild your Credit
By: Cornie Herring | 04/08/2007 | Credit
A good credit score or credit rating is very important when come the time of applying credit. The better your credit score is, the better deals that have attractive low interest rate will be offered to you by many lenders, enabled you to have choices to select the best offer among the good deals. If you have bad credit score, it is important for you to build your credit and get it back to order. Here are a few ways that you use to rebuild your credit and achieve a good credit score.
Debt Collection - Know Your Rights
By: Susan Megge | 30/08/2006 | Advice
The phone is ringing off the hook and caller ID identifies the incoming calls as "unknown caller," toll-free call," or "out of area." When you finally politely answer the phone you're confronted by an obnoxious, rude and threatening bill collector.
Your Credit Rating – What you Need to Know
By: J Smith | 10/07/2007 | Finance
What is a Credit Report/Fie? Do you know what is in your Credit Report/File? Now is the time to find out. Learn how to get a free copy of you credit report.
Do-it-yourself Credit Check-up
By: Melissa Kellett | 01/04/2008 | Credit
It is advisable for those who have a poor credit history and for those who don’t too, to review their credit report periodically in order to make sure there are no inaccuracies on the report and in case there are, to take action so as to have the information corrected or removed. Read on to know how to do this.
Get your Good Credit Rating Back Starting Today
By: Shirley Peel | 07/08/2006 | Finance
So many things we do every day are dependent on a good credit rating. Try getting a credit card, renting an apartment, financing a large purchase, or buying a car, just to name a few, without good credit, and reality will set in.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
UAW strike agains GM
By: helmet | 25-09-2007
The United Auto Workers are striking against GM, probably with good cause.Is GM going to survive this?
Borrowing/spending £5k
By: 9527faye | 16-08-2007
Hi i need to borrow about £5k and people keep on telling me to ge an interest free credit card and just change it every year - can you tell me how this works and will i pay any fee/charges
Credit for answers
By: Oron | 05-08-2007
Does the ratio of "thumbs up" to the toal number of answers have any meaning ?. Sometimes it is frustrating: One spends time and afforts to give a good detaled answer and is not acknoledged even by 1 "thumb up"..... Does it mean anything about the answer ? What is the average ratio of "thumbs up" vs "Toalt no of questions" being asked ? Should Yedda encourage 2B more generous 2 credit "thumb up" ? (that is the only reward at Yedda). Should Yedda analyse each answer and credit each answer with a "Thumb up" as Yedda considers its value).
I was wondering if forclosure effects releasing a ...
By: helpneeded | 03-08-2007
i was wondering if forclosure effects releasing a car 2 years after a forclosure;;;;if you have leased a car in good standing fot years with the same creditor?
Taking credit at work
By: elka | 29-03-2007
What should I do if someone takes credit on my work? how can I make my boss to see who really did everything?
FICO credit score
By: evan7711 | 28-02-2007
How do I find out my FICO score? Also, how can I raise my FICO score and get better credit?
Q&A Powered by:
More from Cornie Herring
Debt Relief Options - Overwhelming With Debt is not End of the Life
By: Cornie Herring | 27/06/2008 | Debt Consolidation
Many debtors do not understanding their available options in handling their debt issue, which led some of debtor chooses the extreme and unwisely decision to pay off their debt with their life. There are many options available which you can use to bring your overwhelming debt to a comfortable level while working your way out of debt. Life is your only asset that can't be repay if it is lost, so don't use it to pay your debt because debt can be payoff with other options.
Debt Relief Advice - Gambling is not a Way Out of Debt
By: Cornie Herring | 07/06/2008 | Debt Consolidation
Gambling is an entertainment for people who have money to lose as there is no guarantee for winning at casino. Don't make your debt condition worse by trying your fortune at casino because you can't afford to lose if your purpose of playing at casino is to resolve your overwhelming debt issue. There is a better option to resolve your debt issue.
Debt Relief Advice - Gambling is not a Way Out of Debt
By: Cornie Herring | 04/06/2008 | Debt Consolidation
Gambling is an entertainment for people who have money to lose as there is no guarantee for winning at casino. Don't make your debt condition worse by trying your fortune at casino because you can't afford to lose if your purpose of playing at casino is to resolve your overwhelming debt issue. There is a better option to resolve your debt issue.
Debt Relief Tip - You Can Pay Off Your Heavy Debt Easily
By: Cornie Herring | 13/05/2008 | Debt Consolidation
Most people will get another loan to pay off the current debts through a debt consolidation process. It's a good option to bring your debt from stressful level to a more controllable and manageable level. But, there is another option that most people miss out. Find out here.
Beware of the Warning Signs of Too Much Debt
By: Cornie Herring | 05/05/2008 | Personal Finance
Using credit and good debt can be very powerful to allow you to buy a home, a vehicle, or send your children to college, and provide leverage for other purchases. But if you accumulate too much debt, it can pose a serious debt issue. Keep yourself alert with the warning signs of too much debt as stated below, so that you can handle it as early as possible before it become too serious to address.
Student Credit Card Debt Consolidation Guides
By: Cornie Herring | 17/04/2008 | Debt Consolidation
Students buy things with credit card but paying just the minimum due each month are common these days. This is why today's many students are in debt due to credit card. If you are one of them, you should know that if you pay just the minimum amount due each on your credit balance, the balance will be charged with interest and the amount of credit debt that you incurred could grow to outrageous proportions.
Is it Possible to Get a Personal Loan With Bad Credit?
By: Cornie Herring | 05/04/2008 | Loans
Personal loan can be a life saver for you if you are facing a huge tax bill, unexpected but important expenses such as medical and car repair bills. If you have a good credit score; you should have no problem in getting a personal loan to overcome you current financial disaster, but if you have a bad credit score, you might worry whether you are possible to get a personal loan to resolve your current financial hardship.
Credit Repair Tip - Why You Need to Improve Your Credit Score?
By: Cornie Herring | 01/04/2008 | Credit
Credit score is not just a number. It is a measure of your financial capability and healthiness. It can affect you everything from whether you qualify for a loan to the approval for an insurance application, up to whether an employer will hire you. If you do not have a good credit score, you must make a plan to improve it, else it can be costing your dearly.
Finance 
