This is a frequently asked question in my office, “How do I improve my credit score after bankruptcy.” It may seem like the end of your credit score when financial disaster strikes, but you would be surprised to know the that you can rebuild your credit quickly to obtain jobs, and finance large purchases like a home or car. Here are my Top 10 ways to quickly whip your credit score into shape:
- Never charge more than 25% of any available credit line;
- Eliminate the debt. [Pay it off, filed bankruptcy, or settle it]
- Pay off balances in full each month, on time [never charge more than you can afford]
- Review your credit report annually for accuracy and correct errors;
- Never co-sign for the debt of another, unless you’re willing to pay for it;
- Shred all privacy related documents [names, addresses, birthdates, etc.]
- When shopping online, be sure to protect your identity/information;
- Audit your credit card statements monthly to be sure all charges are correct;
- Apply for an open new accounts only as needed;
- Don’t close old accounts
Having a great credit score is within everyone’s reach when you follow these simple tips. For more in depth information, please visit credit education center. I generally do not recommend going into debt because as a bankruptcy lawyer, it is my job to help eliminate debt for my clients. However, I find many clients experienced problems not related to financial irresponsibility, but rather a financial calamity. This Great Recession has caused tremendous unemployment and underemployment where workers wages are reduced and/or their hours. Many of these statistics are not included in the government unemployment rate, making it appear that our economy is improving. It is possible to bounce back from a drop in credit score. Working with a credit repair expert can speed up this process.
A professional and reputable credit repair company will make a ongoing written dispute campaign against every error they find in your credit reports with all three major credit bureaus. You’ll also receive credit education through the process. After 60 Minutes aired 40 Million Mistakes: Is Your Credit Report Accurate?, there has been a rise in lawsuits against the credit bureaus Experian, Equifax and Trans Union and the creditors who report incorrect information under the Fair Credit Reporting Act and Fair Debt Collections Practices Act. These federal laws protect consumers against harassing debt collectors and false information on credit reports.