| Helping Real Estate Investors, Small Business Owners, and Regular Consumers Find Solutions to Credit Challenges |
| Linda Adams - The Clean Credit Queen™ |
 |  |  |  |  |  |  |  |
- How to Re-establish Your Credit after Bankruptcy
Every year nearly 2 million people file for bankruptcy. For the majority of those people, bankruptcy represents
the opportunity to wipe out their overwhelming debt and gives them a chance to re-establish their good credit
after bankruptcy. It is true that the bankruptcy remains on your credit report for 7-10 years but you can start to rebuild your credit
almost immediately. Do not wait seven years; do not even wait one year to begin to re-establish your credit. Also, set a note on your
calendar to remind you at the 7-year mark. At this time all items marked 'included in BK' should disappear from your file. Make sure
you check your credit report to verify that this happens!
As with any credit issue, the best place to start is with your credit reports. They should be an accurate reflection of all of the debts
covered by the bankruptcy. Catch errors as soon as possible to make them a bit easier to correct. Make sure you keep all of the
bankruptcy related paperwork showing amounts and any agreements made between you and your creditors. You may need them as
long as 10 years or more from the date you file. These things have a way of reappearing just when you thought you were out of the
woods.
Your situation after bankruptcy is not unlike that of someone just starting out who has no credit history at all. You should start your
after bankruptcy credit repair by getting a secured card. Make sure it is one that can be converted to an unsecured card in the future,
after you have proven yourself able to handle payments on time for at least a year. Be sure not to get yourself in any more debt that
you cannot handle. Keep an eye on all medical expenses and keep your credit card debt paid off as quickly as possible. Have only
two cards at the most. You may need to start with store cards and cards that must be paid off every 30 days, but these will help you
establish new and better credit habits.
If you think that you can never again get a mortgage, be sure to check into programs offered by the Veterans Administration (VA) and
the Federal Housing Administration (FHA). Both have programs that allow someone to apply for a loan two years after the discharge
of their bankruptcy and the re-establishment of their good credit. Of course, you must have established a clean record over those two
years so be sure to pay ALL bills on time.
The U.S. Department of Housing and Urban Development also offers counseling and local programs that can help you find affordable
housing. The rent to own programs offered by some investors are another great place to start because you can work to purchase
your home and establish your good credit at the same time.
Bankruptcy is not the end of your credit life. Don't start to use only cash. This will never re-establish your credit. Having good credit is
critical to so many areas of your life that you should try to re-establish your credit as quickly as possible.
For more information about the impact of bankruptcy on your credit, click this link "Your Credit Report 7 Years Later - Repairing Bad
Credit", or you can sign up below for the Free Information Report on "Reestablishing Your Credit After Bankrupt
- Summary – Use your credit report to help you establish good credit after a bankruptcy and qualify for loans and credit cards in two
years or less.
Credit Article by Linda Adams - The Clean Credit Queen
Good Day and Good Credit
- Linda Adams is an innovative and seasoned facilitator/educator with more than 20 years experience designing and implementing
programs for audiences of all ages. She is dedicated to helping others realize how important their credit is to every facet of their lives.
| 2008 Copyright © LDRA Performance Consultants Inc. All Rights Reserved. |
Linda Adams, The Clean Credit Queen is not a registered investment advisor and the information provided on this website should be considered educational in nature, but it is not a substitute for legal or professional financial advice. If you believe you need the help of a Certified Financial Planner or other investment counselor, please seek a qualified professional. |
| Got Credit Problems? Credit Education Works. Get Your Credit Out of the Red and Into the Green! |