Can I Still Repair My Credit After Declaring Bankruptcy?
You may be surprised to know that it isn't impossible to repair your credit after you've filed for personal bankruptcy. In fact, within two to three years of a bankruptcy you may have been able to repair your credit to the point that you may be eligible for a mortgage loan at the same percentage rate as others with the same income. With a proper credit repair plan of attack, you will still be able to get a home, though the size of your down payment will have to be higher and the stability of your income may be of more importance.
Credit Repair After Bankruptcy
Credit repair becomes continually more attainable with time. With each year that passes after the first three or four, bankruptcy becomes less important on your credit report. It will remain there for ten years, but you can begin to repair your credit report long before the bankruptcy is gone.
To begin the credit repair process
early on, follow these suggestions:
- Open a savings account and contribute to it regularly.
- Apply for a secured credit card (they will ask for a cash deposit for you to charge against). Use it and pay all charges in full over two months so they show on credit reports.
- Pay all bills (utility, rent, mortgage, etc.) on time or early every month.
- Take out a small loan when you have saved up some money. Use the savings account as collateral for the loan, then pay back the loan over a few month's time. It will show up as a positive rating on your credit report.
- Use credit sparingly when you are able to get it.
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