Wednesday, May 31, 2006

Credit repair after bankruptcy

credit repair after bankruptcy

By-Satyajit Das(M.B.A--Finance)--Mr.Das is a famouse credit consultant and a regular contributor to some leading directories on the net.
This blog post is about credit repair after bankruptcy exclusively written by him for this blog only.

When many people think about credit repair after bankruptcy, they are usually worried about whether or not they will be able to qualify for credit after bankruptcy and loans in the future.

If you consider that that qualifying for credit and loans is one of your concerns when it comes to credit repair after bankruptcy - and by the way, it's a valid concern.

The first thing is-

Do you know what is on your credit report? Even if you have just filed bankruptcy it is extremely important that you know how it is reported on your credit report.

After receiving your bankruptcy discharge papers the first thing you will want to do is get a copy of your credit report and make sure that the information reported on it is correct.

Rebuilding your credit as soon as possible is critical when it comes to credit repair after bankruptcy. Why? Because rebuilding your credit history can increase your credit score. This in turn can mean the difference between qualifying or being declined for a loan.

If you increase your credit score enough it could help you get a lower interest rate - as a result, you could end up saving $100s or even $1,000s in extra interest.

Make sure that ALL creditors that you included in the bankruptcy are showing that they were and that your balance is $0 and nothing else. Profit & Loss or Charge Offs will lower your credit score. Make sure they report as "included in bankruptcy" with a $0.00 balance.

If a creditor shows any balance other than $0.00 and it was included in the bankruptcy it will lower your credit score.

You should know Make sure that ALL creditors that you included in the bankruptcy are showing that they were and that your balance is $0 and nothing else. Profit & Loss or Charge Offs will lower your credit score. Make sure they report as "included in bankruptcy" with a $0.00 balance.

If a creditor shows any balance other than $0.00 and it was included in the bankruptcy it will lower your credit score.

The second step is you should know how the credit approval process works. This is another key part of your credit repair after bankruptcy game plan. You need to know what lenders look for when evaluating a credit application, and how to use that information to your advantage.

I think now you know some steps you can take when it comes to credit repair after bankruptcy as far as credit and loans are concerned.Best Of Luck.

credit repair after bankruptcy.
You can give a look at his another post on credit after bankruptcy

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