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Getting Credit after Bankruptcy |
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| Just about anyone can get credit after a bankruptcy if you know how. Bankruptcy deals a blow to your credit, but the effects don't have to be long lasting. Long before the bankruptcy is gone from your credit report, you can be qualifying for loans with good rates and terms. If you have recently filed bankruptcy there are two things you have to remember. Nothing in credit is "forever", Bankruptcy can remain on your credit report for up to ten years, but if you adopt and practice good credit habits, pay your bills on time, and don't apply for too much credit at once, you will find your credit score greatly improved in one or two years. You have to get and use credit to improve your score. Obtain a copy of your credit report from all three scoring companies. They are Experian, Equifax, and Trans Union. Credit reports frequently show accounts as open or overdue, when in fact they were closed and the obligation wiped out as part of the bankruptcy. Contact all three credit bureaus and insist that these accounts be properly reported as "included in bankruptcy". Get and use a secured credit card. A 'secured' card gives you a spending limit that is equal to an amount that you deposit in the institution that issues the card. Try not to charge more that 30% of the credit limit, and pay your balance in full each month. Light, regular use of a credit card will rebuild your credit. Bankruptcy may seem like the end of the world to you, and you may mistakenly think that your credit is destroyed for good, but by practicing healthy spending and paying all your bills on time, you can rebuild your credit while learning from past mistakes. |
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