The Top 3 Strategies to Use When Building Your Credit after Bankruptcy
Being bankrupt feels like hitting the rock-bottom, with no way up or no way down. Most people find it hard to start over again especially when it comes to building credit after bankruptcy.
Luckily, here are the three strategies that you can use to increase your chances of being approved for auto loans, credit cards, and home loans if you have a bankruptcy on your credit report:
1. Apply for a credit when your approval chances are high and settle payment on time
This 1st strategy sounds easy breezy but most people end up applying for credit the WRONG way and make it more difficult than it needs to be. But take note, you have to be careful when applying for credit. The purpose of obtaining a loan is to build a credit history again after bankruptcy and you surely do not want to be bankrupt again, right? Additionally, the once harmless inquiries are not harmless after all. Too many can hurt your credit score.
2. Add positive credit history to your account.
Remember the times when your credit standing is extremely good and you are paying well? You might want to mention that. It is 100% legal to do so, of course. But not everyone is privy to this information. If you are seriously considering building your credit after bankruptcy, this one is a good strategy to apply.
3. Check your credit report for any inaccurate or negative information
You are starting again. Any errors on your credit report will hurt your chance of having a good credit standing again. Take note that there is no need for a credit repair company for that. You can certainly DIY it and save a few hundred dollars. Just remember that you need to know exactly what to do.
There are some pieces you need to pull together when you are rebuilding your credit after bankruptcy. But it’s worth it. You can get better deals with lower interests and amenable payment schemes.