The widespread myth about bad credit is that filing bankruptcy case means the ruining of the credit forever. Though to some extent it is right that bankruptcy can make serious damages in the credit score of an individual, he or she can be eligible to get new credit by following the right steps. Once a person is bankrupted, the bankruptcy report will be shown on the credit score for the period of ten years and in the bankruptcy court, it will stay on report for lifetime, but he won’t have to face off limits for credit for the rest of his life. He can make a great story on credit repair even after bankruptcy to get his credit score back on the track.
Exact reflection of bankruptcy on the credit report
Many people have the misconception that hiding the news about their bankruptcy filing would be better for their credit report. If they should keep in their mind that if their don’t show the bankruptcy in the credit report, it would show apparently an outstanding, yet delinquent balance
that would hurt the credit score too. Once their account balance would be discharged due to bankruptcy, the credit report should display as zero balance in the account. In case, it doesn’t reflect like this, they should send a dispute report in the credit bureaus for the credit report update.
Rectifying other errors on the credit report
If an individual really wants a great story on credit repair after bankruptcy, he or she must make sure that the credit report is absolutely error free. They need to review all the accounts in their credit report including those also that are not part of their bankruptcy filing and in case they find any dispute report, they should remove from their credit history.
Continuing payment for non-bankruptcy accounts regularly
People usually have several accounts from which not all of the accounts may be included in the bankruptcy. For instance, the account of student loan cannot be discharged from bankruptcy. In fact, regular payments in other accounts help in credit repair even after bankruptcy. Therefore, in order to credit repair, they must keep on payment in those accounts that are not included in the credit report so that they will not face any problem if they fall behind.
Avoiding the attempts of removing bankruptcy report
Many credit repair companies claim to remove the bankruptcy filing case from the credit report(check out this List of the Best Credit Repair Companies). When the bankruptcy is genuine, they don’t have the legal right to do that. Therefore it would be better to shun from those credit repair companies as they use the illegal method for bankruptcy credit repair since when the report will be verified in future, it may create several legal problems.
Getting new credit
Some of the credit card companies approve credits to those applicants who are suffering from bankruptcy problem. When an individual doesn’t have the luck to obtain such traditional credit card, he or she can think about secured credit card where they are required to make security deposit. Once the user makes payment for one year, he or she will be automatically converted to unsecured card user.
Maintaining the credit card balance
In course of credit repair, the credit card holders must keep the credit card balance low and pay for it every month within due time. Thus they can avoid debt trouble gradually.