Credit Repair
Credit repair after bankruptcy may help to limit the challenges a discharged bankrupt will face when trying to raise credit in the future. There are ways that may help credit repair following bankruptcy but there is no quick fix.
After discharge from bankruptcy your credit report will not be wiped clean as it shows the bankruptcy for at least six years. After this time you will be able to remove the bankuptcy from your credit report. This time may be prolonged if the individual concerned is subject to a bankruptcy restrictions order or a bankruptcy restrictions undertaking. Further to this most mortgage lenders will ask if you have ever been bankrupt, hence bankruptcy could affect your creditworthiness forever.
Many people consider a mortgage after bankruptcy impossible. Whilst it is certainly more difficult and will cost more there are lenders who will service a discharged bankrupt.
The following points may help with credit repair after bankruptcy:
- Add a note to your credit report explaining that all debts showing on the credit file were included in your bankruptcy (If indeed that is the case).
- Add a note to your credit report stating your discharge
- Reduce your expenditure by shopping around. Expenditure to income ratio is one of the factors a lender will score in determining your creditworthiness.
- Avoid companies claiming that they can repair your credit for a fee
- Keep up the payments on any new finance agreements.
The following links will be of further interest if you are looking to rebuild your credit:
