Bankruptcy and Building Your Credit

Fair Credit Reporting Act

Thanks to the Fair Credit Reporting Act (FCRA), any information from your bankruptcy must be removed from your credit report within 10 years of the incident. Although some information will stay on the report for 10 years, there are a lot of items that can be removed much earlier. For this purpose it is important that you begin a credit repair program immediately so all of your accounts will be carefully scrutinized. We will help you dispute any inaccurate or outdated information from the time of your bankruptcy. There is still hope of achieving a great credit score despite the past.

Secured Credit Cards

When recovering from a bankruptcy, you often need to start building credit from scratch. The best way to achieve this is to apply for and maintain two secured credit cards. You will need to back the credit cards with a deposit, but it is necessary since you will not be approved for a regular credit card. Once the cards are in your hand, ensure you pay your bills on time and maintain a balance of less than 20 percent of the card’s credit limit.

Credit Repair After Bankruptcy

After a bankruptcy, accounts are discharged and you are no longer obligated to pay certain debts. In these cases creditors cannot send you to collections. There are many cases where credit reports have not been updated after a bankruptcy and they still show you owe money to a lender. It is our job to find these accounts and assist in removing the negative information from your credit report. With time, your credit scores can recover after a bankruptcy. Remember, credit repair is all about how you handle your accounts in the future, so focus on what you can do.