How To Get Rid Of Bankruptcy On Credit Report?
Introduction A bankruptcy will lower your credit score and can lead to a hard time accessing credit facilities such as loans, mortgages, credit cards, and other credit facilities. And even if the bankruptcy is no longer apparent on your credit report after 7-10 years, the impact remains. Luckily, there are some preventive measures that one can take to ensure that bankruptcy is not quite as permanent as one might think and ways to make sure that it does not impact your credit score in the long run.
Get Your Credit Reports The first check is to get a credit report from Equifax, Experian, and TransUnion to assess all the information being reported on bankruptcy. Make sure that whatever data is being fed to the algorithm such as the filing date or the type of bankruptcy is correctly entered. In case the content has errors or contains outdated information, log a dispute to have it rectified. One of the areas that should be accurate when preparing the reports is bankruptcy details are very vital when it comes to credit rebuilding.
Finish Your Bankruptcy Plan If you filed a Chapter 13 bankruptcy, ensure that you complete all payment obligations for a 3 to 5 years repayment period before you receive a discharge order from the bankruptcy court. It also helps any future lenders to see that you have paid for your credit obligations in a responsible manner. If you file a Chapter 7 case, it will enable you to get another chance by eradicating all the dischargeable debts. Maintain a constant agenda of meetings with the bankruptcy trustee and attorney to ensure that you are meeting completion requirements.
Rebuild Your Credit To have that particular bankruptcy expunged from your credit record, it is mandatory to rebuild credit histories. Begin by applying for secured credit cards which necessitate a refundable cash amount and then utilize the card correctly by avoiding high charges and adhering to the payment schedule. Another credit facility that you can also think of is becoming an authorized user for someone else credit card account. This means that as you have a positive payment history reported to the credit bureaus it will begin to counterbalance the effect of bankruptcy.
Add Positive Information However, other positive records in your credit report can be opened with other credit card companies in addition to new credit lines to counterbalance the bankruptcy. For instance, if you had an installment loan or auto financing, and you decide to prepay, request the creditor to write a letter confirming payment and forward the same to the reporting bureaus. It is also useful to have a good track record on rent payments reported, which is likely to help when searching for a home to rent at a reasonable price. The more recent positive items will eliminate the negative impacts that are likely to lower your credit score.
Wait It Out In our opinion, one of the best strategies to have a bankruptcy deleted from the credit report is to wait for a long time based on the chapter that you filed, which may take 7-10 years. The impact of bankruptcy on the credit score decreases as time elapses, and you can recover from it in the long run. So if the Chapter 13 bankruptcy was filed at 30 for instance, then by 40, it will be fully erased.
Send Goodwill Letters If you have emerged from a bankruptcy case and have worked to rebuild your credit and meet all of the requirements for the bankruptcy discharge, it may also be possible to write letters to some of the creditors asking them to remove it early from your credit reports as an expression of goodwill. Apologize for any wrongdoing and point out that you have been working with them for a long time and have known your shortcomings. It’s not always effective though it can’t be much of a harm to politely request him/her to remove any records of the bankruptcy.
If you are unable to manage or fix credit report problems on your own, you should consult an expert credit repair service. But while you are actively engaged in deleting your bankruptcy from your credit reports, do not hesitate to seek the help of credit repair agencies or financial advisors, if necessary. It means that they have an opportunity to view the information concerning your bankruptcy and to inform you whether they see incorrect, misleading, or unlawful information on your reports in contrast with your actual bankruptcy documents. Repair companies have a clear understanding of the reporting provisions and they usually achieve good results when it comes to the elimination of negative entries.
Have you ever filed for bankruptcy, and then learned that you can only get this removed from your credit history through a rigorous and persistent process? The best solution is to start practicing good credit habits. Just take the time out to be patient but be proactive and your credit scores will start to rise for the better.
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