Get Your Credit File Back In Order After Bankruptcy!

By: Sam Ness

Having a good credit score is vital to your financial future. These are the words of my local bank manager, when rejecting my credit card application, just a week after coming out of bankruptcy.

Well, it was hardly any consolation that he approved a debit card linked to my check account, I had with them for as long as my online business was active, even during me filling for the Chapter 11. His warning still rings in my ears today. So, the question arises: how to protect your credit score from bad entries that can harm your good standing with financial institutions?

Firstly, prevention is better than cure. Try to anything, in order to avoid bankruptcy. If you can get your debtors to agree on a partial repayment, go for it, and honor your obligations. Many lenders, whom you owe money, will agree to either reduce, or defray repayments of the loan, if you show that you’re genuinely interested in staving off the bankruptcy proceedings, that would result in heavy losses to them, anyway.

It’s a well known saying in the banking industry: “Always keep the communication lines open." This will show that you’ve enough of the good will, determination and maturity, to pay back your commitments.

But, what do you do, if you had to declare personal bankruptcy, and your credit rating is seriously damaged? The answer is, you have to work to rebuild your standing, and put a few of good things on your credit file.

How do you do it, if nobody wants to lend you money? Yes, it’s true; immediately after you’re released from bankruptcy, no serious loan provider will accept your loan application. This is even worse, if you remain an undischarged bankrupt. But, you can initiate small steps that will demonstrate to your prospective lenders your willingness to repair your bad credit history.

Here are some tips that should deliver a meaningful improvement in your financial position:

- Ask for a free credit report, and get to know your bad and good records.

-Start saving regularly, by depositing small amounts of money on your bank account, thus demonstrating to them, your sound financial management practices.

-Repay any outstanding loans, leases and hire agreements that you have.

-Pay all bills on time, without being prompted by default notices.

-Apply for a small loan outside of the mainstream lenders. This could be a payday loan, or a store credit.

-Try applying to your bank, for a prepaid credit card.

- Put some money in a term deposit, and keep them there as a security, for any future commitments.

If you implement more than a few of these steps, your post-bankruptcy finances will be given a chance to recover. There’s simply no other way, for anyone functioning in the contemporary American society, to do it effectively without a good credit score. Consequently, the sooner you put some serious effort into ameliorating your earlier bankruptcy-related problems, the sooner you’ll enjoy a full access to the invaluable source of money: a low interest rate credit. And when your bankruptcy fades into a distant past, you’ll be sufficiently prepared to take care of your financial affairsComputer Technology Articles, by the way of regular savings and controlling expenses wisely.

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