Monday, 16 July 2012

Restore Credit after Bankruptcy: How Long Will it Take

You will be discharged from the bankruptcy after one year but poor credit will affect your financial status for years. Bankruptcy details will remain on financial details of your bank for coming six years after declaring bankruptcy. Bankruptcy details can ruin your credit history badly and it is important to improve credit. Low credit score can prevent you from loans, mortgages or credit cards.

However, it will take time to meet with normal credit rating after bankruptcy. But during bad credit period, you will be offered high interest charges on loans and mortgages by the lenders. However, there are several measures that can help to rebuild credit score. At first, you should receive information on Equifax, Call Credit and Experian credit report. Be ensure that it is correct and in case of incorrect information available contact the related department to make it correct.

One efficient tool to rebuild credit score is prepaid credit card. It doesn’t require any credit check and monthly fee paid on it will be treated as loan. Each monthly payment that you pay will help to improve your credit score. 

You should also avoid cosigners for new credit because it is not good to create strong relation with lenders. You should use cash to make payments. If you have credit account that you are not using then close it. Use only few credit cards and make sure to manage that efficiently. Bankruptcy will not clear all your debts so examine your financial obligations and try to clear it as early as possible to make good credit rating.

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