Credit Repair

How To Repair Bad Credit After Bankruptcy?

First things first, if you are looking out for quick fixes, you must be informed that there are none. You may come across many such agencies that claim to help you repair bad credit after bankruptcy at “a click of mouse” or “within hours” or “within just a few days”. All such claims are based on thin air because the process in reality takes a lot of time. You will probably have to wait for a few months before you can notice any significant improvement in your credit report. Your progress will depend on how much effort you put into the right direction and how consistent you are. Remember, it is comparatively easier to build your credit for the first time, but re-establishing your credit heath after bankruptcy is going to be a tough journey. So, stop looking out for any magical wand, roll up your sleeves, and following the below mentioned strategies.

Get An Unsecured Revolving Credit Account

Though it is not at all an easy task to qualify for an unsecured revolving credit account, such as MasterCard or Visa, when you have a bankruptcy record in your name and when your credit is at an all-time low, you can still succeed in getting a gasoline credit card at least, which is not that bad to start with. You can repair bad credit after bankruptcy significantly within 6-12 months of time by making timely payment on these cards. After a few months, it may even help you qualify for a low-rate regular card.

Get A Secured Credit Card

A secured credit card is not only easy to obtain but it is also quite safe for you. In order to get this card, you need to deposit a certain amount of money in your bank account. The deposited amount will be you maximum limit on that card. It means you cannot spend more than what you have deposited against the secured credit card. Make sure you pay off the outstanding balances on that card in full every month. Though credit card companies do offer a convenience to consumers to make just a minimum monthly payment and move on, but if you opt for this convenience, it can soon push you toward another debt problem, getting out of which will not be an easy process. When you pay off the balances in full every month, it will establish a better payment history, which will eventually result in an improved FICO score. Using a secured credit this way is one of the proven ways to repair bad credit after bankruptcy.

Diversify Your Accounts With An Installment Loan

A better mix of revolving credit can help you repair your credit faster. It can help you achieve a better FICO score over a period of just a few months. Therefore, it may be a wise idea to apply for an installment loan. Though it may not be an easy task to qualify for a car loan, you can easily qualify for a furniture loan at least. If you have a good payment history with your secured credit cards for several months and are also willing to put down a large deposit, appliances stores, furniture stores, or other retailers may easily agree to open an account in your name at an affordable rate of interest. Here again, you just have to pay off the monthly installments in a timely manner. It will accelerate the process and you will be able to repair bad credit after bankruptcy at a faster pace.

Custom Search

Tags: ,
Posted in Credit Repair, Fix Your Credit | No Comments »

Leave a Reply

You must be logged in to post a comment.