Building Credit After Bankruptcy: Three Strategies
Here are three "Building Credit After Bankruptcy" strategies you
can use to increase your chances of being approved for auto
loans, credit cards, and home loans if you have a bankruptcy on
your credit report:
Building Credit After Bankruptcy Strategy #1
Apply for credit where you have a high probability of getting
approved, and make the payments on time. Sounds simple, but most
people go about applying for credit the WRONG way and make it
more difficult than it needs to be.
By the way, don't go overboard when applying for credit. The
whole purpose of getting a credit card or loan is to rebuild
your credit history after bankruptcy - not to get in to debt up
to your ears!
Be careful about the inquiries. When it comes to some types of
inquiries, too many can hurt your credit score. Other types
don't matter.
Building Credit After Bankruptcy Strategy #2
Another way to rebuild your credit after bankruptcy (one my
favorite) is to add years of positive credit history to account.
You can literally add a number of new positive items to credit
your report. It's 100% legal but the technique is not widely
known. When it comes to building credit after bankruptcy, this
is a strategy you will want to consider. I don't have enough
room to go into detail on it here, so I'll save it for another
article.
Building Credit After Bankruptcy Strategy #3
Of course, cleaning up inaccurate and obsolete negative
information on your credit reports is critical when building
credit after a bankruptcy. And you don't need to use a credit
repair company to do it. You can do it yourself and save a few
hundred dollars. Just remember that you need to know exactly
what to do.
For example, there are three ways to dispute information on your
credit report. If you want to correct errors on your report FAST
then there's a certain way you need to request your reports.
Here's another example: There may be some collection accounts or
charge offs on your credit report that don't belong there. You
need to know what to look for to determine if that's the case or
not - and how to dispute such an item if it is. Most people
would look at these items and not even realize they don't belong
there. Remember: When it comes to building credit after
bankruptcy you don't want any inaccurate or obsolete information
on your credit report!
I can keep going but I think you get the idea. There are a
number of pieces you need to pull together when you are
rebuilding your credit after bankruptcy. But it's worth it.
After all, if you can increase your credit score, and building
credit after bankruptcy plays a key role, then you could
literally save up to hundreds or even thousands of dollars in
extra interest and other finance charges when it comes to future
loans and lines of credit.
Copyright (c) 2006 Innovative Solutions Publishing, Inc. All
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