Secrets For Repairing Credit After Bankruptcy

Secrets For Repairing Credit After Bankruptcy

A Few Quick Tips for Rebuilding Credit Post BK Despite how overwhelming bankruptcy may be on your credit, there are a few lesser known secrets that can help you rebuild and quickly repair your credit score.  There is not an exact order in which these steps should be followed; however every single one of these actions will help improve your credit score.  Over time, with good borrowing and spending habits, it is possible to 100% recover from a bankruptcy filing regardless if it is chapter 7 or 13.   Open a Bank Account – Make Timely Payments This may seem very obvious; however you would be surprised how many individuals post-bankruptcy move to a “cash only” system.  While there is absolutely nothing wrong with this philosophy, if the goal is to rebuild credit, using cash only to make payments will not help the process. Regardless if it is a checking or savings account, opening a bank account and using it to pay bills will keep your payment history visible to creditors and lenders.  This is a good thing from a credit score standpoint.  Remember from What Makes Up a FICO Credit Score that payment history is the largest factor at 35% of the credit score.   Open Credit Cards (3 is Magic #) The ideal situation is to open credit cards right before or during bankruptcy because prior to the BK showing up on your credit report it will be easier to get approved for unsecured lines of credit.  However based on amount owed, this may not be possible.  Post-bankruptcy if you cannot get approved for any unsecured credit card, go with a secured credit card, a opposed to cash.  This is the type of card that requires you to deposit funds in an account to establish spending limits.  It may seem somewhat futile; however this goes a long way to helping show credit worthiness. Additionally it is better to have small balances on credit cards instead of having them maxed out or zero.  Also be careful when applying for multiple cards in a short period, as this will generate inquires which will actually negatively affect your credit. Become an Authorized User on a “Good Credit” Account This does not give you access to the funds on the account, however it does allow you to borrow the good credit of the account holder.  This is an easy one to do as long as you...

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