To be frank Rebuilding credit after bankruptcy should be started as a fresh start, we can’t find any temporary solution. In order to rebuild your financial live you should exit the bankruptcy along with the perfect immediate plan. You have to analyze thoroughly to rebuild your credit worthiness.
If you ask experts “how to rebuild credit after bankruptcy, “they will suggest avoid getting credit again”. Although it is the best way it is not a practical solution. And just avoiding the credit will not going to improve your credit scores again. It can’t fix your credit score too.
Credit scores are not playing the big roles only while applying for the home loans, car loans, credit cards and other kinds of loans. In fact good credit scores can have an impact on your loans more than the high interest rates. For instance if your credit score is bad then your insurance premium will go up. When your credit score is average or bad then getting loans from some banks will become a night mare. When you apply for job somewhere there are many chances that your employer will pull up your reports and check your credit worthiness. If you have a bad credit and any bankruptcy filed on you, the situation will get even worse. When you want to rent an apartment you will need to pay high deposit amounts.
Remember even you have showed up good credit worthiness for some time none of the financial institutions will check the report line by line. All they the only the number. So knowing how to rebuild credit is a wise option.
How to Rebuild Credit
One of the most important things you can do rebuild your credit scores is paying off your monthly bills on time. Even if you know certain bills will not be reported to the credit bureaus try to pay off. Because this activity can help you to keep yourself free from the future collections. If you can make yourself to stay away from the bankruptcy you are half done with your credit rebuilding.
Take out small accounts
It is recommended to disconnect some of the smaller installment accounts which can be a secured credit card, vehicle loan, unsecured credit card or a personal loan. You can get one or all of these even if you have bankruptcy. But the terms and conditions will not be very favorable. Always try to keep the credit line in your budget Give the high priority for making payments when you have these accounts.
Guaranteed way to improve your credit scores
If you regular in your payments with any credit account you have (it may be either secured or unsecured) without any past month bill payment in collections definitely your credit score will get improve by 20 points. Never neglect by thinking just 20. It can create a significant difference in your credit rebuilding. You can also raise your credit score significantly by keeping your balances always under your credit line. It is good to have an eye on the ratio of debt to income.
If you ask a question how to build your credit as a fresh one your 100% working way is applying for a secured credit card. If you get affected by the identity theft then you don’t need to worry much. It can be sorted out easily by signing up with the credit monitoring service. You can get free credit score reports at free of cost but when you sign up for the paid services they will help you to track your progresses and will let you know how far you should go further to reach your dream score.
You can find so many websites to track your credit progress. Some websites enables the user to predict how certain credit behavior can raise or decrease your credit score in the upcoming months. When using these sites you can actually find out yourself on how to rebuild credit.