Credit After Bankruptcy

If you have a bankruptcy on your credit report you probably feel like there is no way to escape a low score. However you can remove this listing and you can create a positive score for yourself.

There is a lot of inaccurate information that claims a bankruptcy will be on your report for 10 years. This is not true you can remove it without waiting 10 long years. We suggest that you:

1. Dispute the mark with the bureaus.

You can do this yourself or hire a service to dispute the mark on your behalf. Did you know that the bureaus do not check public records when they investigate an item? Public records are where this mark is recorded and where the bureau would find verification.

The Fair Credit Reporting Act says that any mark that can not be verified by the bureau must be removed from your report. Additionally this mark says that you the consumer can dispute any item on your report that you do not feel is accurate. Often people are concerned with the legality of credit repair, and you should know you will never be fined, prosecuted, arrested, or face any legal action for disputing an item.

We suggest before you dispute the bankruptcy you double check to make sure any negative accounts are reported as “included in bankruptcy.” This is because once the bankruptcy is removed from your report you will dispute each listing on the basis that it says “included in bankruptcy” yet there is no bankruptcy on your report. Additionally it is rumored that removing a bankruptcy is easier after 2 years have expired.

2. Once you have removed the initial mark, you can start disputing each negative item.

You can dispute it on the basis that it says “included in bankruptcy”, but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.

3. Open a new revolving line of credit such as a credit card. This will help you build some positive credit on your report.

By making your on time monthly payments you will create a positive payment history. Additionally keep your monthly balance at 25% of your available limit because this will show the bureaus that you do use your card and use it responsibly. This will improve your ratio of available credit to debt, a very important factor when your score is calculated.

While it is not illegal to dispute an accurate mark on your report it may not be the most ethical thing to do. However in my opinion charging people outrageous interest rates upwards of 30% and charging late fees is not ethical either.

In sum you can remove a bankruptcy and all the negative marks on your credit report. If you build some positive credit and remove the negative credit you can achieve a very high score. This will improve your quality of life by; lower interest rates, more purchasing power, and extra money.