Bankruptcy does not carry with it the social stigma it once did. The state of the economy and rising (or at least steady) unemployment rates have left many struggling. For some, the only way to save themselves from financial ruin was to file for bankruptcy.
The problem? While receiving a bankruptcy discharge means you’ll have a clean financial slate, the discharge itself will not fix the mess your credit report has probably turned into. As a matter of fact, it may for a short period of time make things worse. The good news is that you can immediately start taking action to repair your credit. Here are a few things to consider.
Review and Correct Your Credit Report
The first thing you need to do in order to repair your credit is actually look at your credit report. Use one of the free reporting agencies and make sure you get a copy of your full report. Take the time to make sure every single piece of information listed is accurate. Make sure each of the accounts discharged during your bankruptcy shows as closed and make sure any open accounts show the appropriate information. Take immediate action to fix any mistakes, either by calling the creditor directly or by getting in touch with the reporting agencies.
Apply for New Credit
Yes, we said it. Apply for new credit and use it wisely. Visiting sites like CreditLoan.com can help you to find information on how to apply for personal loans when you have bad credit. Many other agencies and credit card carriers will give you information as well. The trick is to make sure you are not taken advantage of just because you filed for bankruptcy. You will pay a higher interest rate and you may have to get a secured line of credit instead of an unsecured line. You should not have to pay any outrageous application fees or monthly charges, though. Choose carefully.
Pay Your Bills
Make sure you pay your bills on time every single month. Pay them in full as well. Doing so will ensure your utility companies are reporting a good payment history to the credit bureaus. This will make your quest to obtain new credit and repair your existing credit score much easier.
Bankruptcy isn’t the end of the world. It’s just the beginning. Take your time and rebuild your credit carefully and responsibly. You’ll be glad you gave your credit score the attention it deserves.
Image: Flickr.com/Andres Rueda
Deborah Dera is a full-time professional writer. She enjoys writing about the martial arts, massage and bodywork, health, alternative health, finance, SEO, and much more. She is the founder of Write on the Edge and offers unique content solutions to businesses looking to enhance their online brands.
