subject: How to Rebuild Your Credit after a Bankruptcy [print this page] Author: Vincent Polisi Author: Vincent Polisi
When you filed bankruptcy, it probably seemed like you would never be able to get credit again. Now that your bankruptcy is discharged, it is time for you to begin considering credit repair. Believe it or not, it only takes a few easy steps to get your credit back on track.Clean Up Credit Report ErrorsThe first thing you need to do is request a copy of your credit report and review it carefully. Accounts that were included in your bankruptcy may still be showing as being open and past due.You want to dispute these accounts with the credit bureaus. Disputes may be handled over the internet or throught the mail. Handling disputes through the mail is preferred as this provides you with the necessary paper trail should should you need to move on to more advanced credit repair tatics.Reestablishing CreditOnce your credit report is cleaned up, it is time to begin reestablishing your credit history. A secured credit card is the perfect place to start! You will need to make a small deposit, say $300, with the credit card company. The credit card company will then give you a credit card with a limit equal to your deposit.It is important to look for a company that reports your payments to all three credit bureaus. Avoid choosing a company that has very high fees. Look for a card that does not have an application fee and whose annual fee is less than $50.Once you have a secured credit card, you should go to your bank and inquire about a CD loan. This is where you open a certificate of deposit with your bank and they give you an installment loan that is collateralized by this CD. You will want to have the same term on your CD and your loan.Banks will usually make these loans regardless of your credit because if you fail to pay they still have the CD! Reestablishing installment credit history is very important and this is a great way to do it. After six months, you will be ready to think about getting an unsecured credit card. Try to find a company that is in the business of working with people who have bad credit. Believe it or not, there are quite a few out there! By implementing these simple strategies, you will have the credit repair process well under way! About the Author:
