Credit Repair After Bankruptcy
Credit repair after bankruptcy is possible but it is important to realise that there is no quick fix. How successful you are will depend on your understanding of credit repair and how you make use of the very few credit repair products available.
How can I repair my credit after bankruptcy?
To repair your credit after bankruptcy you will need to:
- Make sure that your credit report reflects you accurately (free credit reports)
- Apply for new credit accounts and manage them correctly
It is important that you do not apply for loads of credit cards after bankruptcy, nearly all providers will reject you and leave a footprint on your credit report. This will make your credit rating worse.
You may wish to consider adding a note to your credit report stating the reasons for your bankruptcy, also make sure that your report states your discharge from bankruptcy.
How long does bankruptcy stay on your credit report?
Bankruptcy will remain on your credit report for six years.
What are the main reasons for credit repair after bankruptcy?
Credit repair after bankruptcy may help to limit the challenges a discharged bankrupt will face when trying to raise credit in the future. Reasons for credit repair now include:
- May want/need finance in the future
- It takes time to repair your credit after bankruptcy
- Reduces cost of finance to you in the long run
- Increases the number of credit products available to you. Credit products can be useful, they have benefits such as insurance, cash back and allow you to purchase abroad.
- Increases the chance of you obtaining a normal current bank account
- Increases the chance of you obtaining a business bank account
- Increases the chance of you obtaining credit when in business
- Mobile phone contracts, Insurance
- May need emergency credit in the future. For example, medical purposes.
Can I just get the bankruptcy wiped from my credit report?
No, you cannot remove a bankruptcy from your credit report or pay anyone to do some magic for you. Bankruptcy will remain on your credit report for the six years it is supposed to be there.
Can anything damage my credit repair after bankruptcy?
Yes, if you have a bankruptcy restrictions undertaking or a bankruptcy restrictions order then it is very unlikely that you will be able to get credit whilst they are on your credit report.
Also, if you miss payments on any new forms of credit after bankruptcy then you will probably up end paying high charges and you will significantly damage your credit rating.
