Credit After Bankruptcy
If you have filed bankruptcy you should expect your credit will be severely damaged. However there is hope, you can take action to remove your bad credit and by building some positive credit you can have a high score.
Contrary to popular belief this mark can be removed from your report and without waiting 10 years. To remove this mark we suggest:
1. Dispute the mark with each bureau.
You can do this yourself or by hiring a service, a dispute letter must be sent to each bureau disputing the accuracy of the mark. Upon receipt the bureaus will investigate, however because bankruptcies are recorded in public records which the bureaus will not check during an investigation, the mark will not be verified.
The Fair Credit Reporting Act says that any mark that can not be verified by the bureau must be removed from your report. Additionally this mark says that you the consumer can dispute any item on your report that you do not feel is accurate. Often people are concerned with the legality of credit repair, and you should know you will never be fined, prosecuted, arrested, or face any legal action for disputing an item.
Before you dispute the bankruptcy it is a good idea to make sure that all other negative marks read "included in bankruptcy." The reason is once the initial bankruptcy mark is removed you will dispute all the other negative items because you do not have a bankruptcy mark on your report. There are rumors that it is much easier to remove this mark after two years.
2. When your bankruptcy mark is erased, you can start to dispute each negative account.
You can dispute it on the basis that it says "included in bankruptcy", but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.
3. Open a new revolving line of credit such as a credit card. This will help you build some positive credit on your report.
When you make your on time monthly payments you will create a positive payment history on your report. Additionally this will help your utilization ratio, this is how the bureaus decide if you are in over you head financially. It is measured by the amount of available credit you have versus how much debt you have. These are the two biggest factors when your score is calculated.
It may not be the most ethical move to dispute a mark you know is correct. However how ethical is it for a lender to charge you 30% interest rate, especially if you have kept you account in good standing for years. Unfortunately all it takes is one missed payment and you can face fees and interest rates, no matter how long you have been a model customer.
In sum a positive payment history, report clear of derogatory items, and a good ratio of available credit to debt is the recipe for a 700 plus score. This will improve your quality of life by; saving you money on large deposits, high interest rates, and the embarrassment of a denial.
Contrary to popular belief this mark can be removed from your report and without waiting 10 years. To remove this mark we suggest:
1. Dispute the mark with each bureau.
You can do this yourself or by hiring a service, a dispute letter must be sent to each bureau disputing the accuracy of the mark. Upon receipt the bureaus will investigate, however because bankruptcies are recorded in public records which the bureaus will not check during an investigation, the mark will not be verified.
The Fair Credit Reporting Act says that any mark that can not be verified by the bureau must be removed from your report. Additionally this mark says that you the consumer can dispute any item on your report that you do not feel is accurate. Often people are concerned with the legality of credit repair, and you should know you will never be fined, prosecuted, arrested, or face any legal action for disputing an item.
Before you dispute the bankruptcy it is a good idea to make sure that all other negative marks read "included in bankruptcy." The reason is once the initial bankruptcy mark is removed you will dispute all the other negative items because you do not have a bankruptcy mark on your report. There are rumors that it is much easier to remove this mark after two years.
2. When your bankruptcy mark is erased, you can start to dispute each negative account.
You can dispute it on the basis that it says "included in bankruptcy", but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.
3. Open a new revolving line of credit such as a credit card. This will help you build some positive credit on your report.
When you make your on time monthly payments you will create a positive payment history on your report. Additionally this will help your utilization ratio, this is how the bureaus decide if you are in over you head financially. It is measured by the amount of available credit you have versus how much debt you have. These are the two biggest factors when your score is calculated.
It may not be the most ethical move to dispute a mark you know is correct. However how ethical is it for a lender to charge you 30% interest rate, especially if you have kept you account in good standing for years. Unfortunately all it takes is one missed payment and you can face fees and interest rates, no matter how long you have been a model customer.
In sum a positive payment history, report clear of derogatory items, and a good ratio of available credit to debt is the recipe for a 700 plus score. This will improve your quality of life by; saving you money on large deposits, high interest rates, and the embarrassment of a denial.
About the Author:
For a review of Lexington Law Firm a suggested credit repair service visit us or for an article about NCO Collection a common debt collector.
posted by Credit Counseling at
8:08 AM
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