123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

How To Repair Credit After Bankruptcy In Easy Steps

By Author: Darren Burgess
Total Articles: 8

Life After Bankruptcy – Here’s How to Repair Your Credit

It’s no over-exaggeration to say that bankruptcy can and does change your life. Not only can recovering financially be a challenge, it also takes a toll on your emotional health.

If you’re in this position, re-building your credit score can be a struggle. But we want to reassure you that with the right strategy – it can be done.

Tip #1 – Make sure that your credit record accurately details your bankruptcy

First things first – double check that your bankruptcy appears on your credit record. If it doesn’t you should contact Experian, as the alternative is to have multiple credit accounts showing as delinquent, and some creditors may even continue to report negative account markers even after your bankruptcy has been discharged.

Tip #2 - Use credit

Don’t be tempted to switch to using cash only in your day-to-day life. The only was to improve your credit score is to actually use credit!

You should register for a free credit reporting service, such as ClearScore or Noddle. These free services will provide you with customised tips as to how you can improve your rating, as well as suggesting credit products that may be suited to your score.

Tip #3 – Use clever credit products

It will undoubtedly be difficult, if not impossible, to be approved for regular credit products, so you’ll need to do your research as to which products offer the best chance of acceptance.

As a starting point, you can apply for a credit card designed for those with bad credit. Or, for a more certain chance of acceptance, you could use a rebuilder credit card. One type of credit rebuilder card is the CashPlus* Creditbuilder. The downside is that it costs £76 per year, but you’ll be guaranteed to be accepted.

The way it works is that the card acts as a ‘loan’ of the £76, which is repaid in £5.95 monthly repayments. These are reported on your credit file, and once complete it will show as a successfully repaid loan.

If you do go down this route, just be sure to meet ALL of your monthly payments. Not doing so could damage your credit even further.

Tip #4 – Avoid companies that claim to repair your credit

Only you – and you alone – can repair your credit. But unfortunately, there’s a litany of scammers and dodgy companies that claim to be able to fix your credit issues in record time.

DO NOT LISTEN TO THEM.

Some of these companies say that they can remove the bankruptcy from your credit file. However if the information is correct, they aren’t legally allowed to do this. You’ll simply receive a report that the information is accurate, although you’ll still end up paying a fee for the privilege.

Tip #5 – Make sure you pay all of your bills on time, every time

That means gas, electricity and contractual services (such as your internet and phone). If needed, add reminders to your phone’s calendar as to when bills are due – or pin them to a board in date order.

Tip #6 - Keep up with your non-bankruptcy account payments

It’s highly likely that not all of your credit accounts would have been included in your bankruptcy, so it’s mission-critical that these debts are paid on time. Debts that may fall under this category include:

- Student loans
- Magistrates court fines
- Maintenance arrears
- Child support arrears
- Social fund loans
- Walking possession order or controlled goods agreement made before your bankruptcy
- Secured debts (such as a mortgage)
- Debts to HM Revenue and Customs
- Council tax liability order

Tip #7 – Can’t manage your money? Seek expert help

If you feel your spending spiralling out of control again, or are struggling to get a grip on bills, it’s imperative that you seek out advice from a trusted debt agency as soon as possible.

Above all else – and beyond these seven bankruptcy tips – it will be perseverance that helps you finally rebuild your credit rating. Just stay committed, focus on stringent money management, and eventually you’ll see your credit score beginning to climb.

Total Views: 20Word Count: 699See All articles From Author

Investing / Finance Articles

1. Everything You Need To Know About Home Loans
Author: Rudra Raghavan

2. What Loan Options Available In 2019 For Money Needs?
Author: Dwayne Johnson

3. Got Stuck? Try These Actionable Tips To Streamline Your Job Search
Author: Akash Rathore

4. Closing Credit Cards - What You Need To Know Right Now
Author: Darren Burgess

5. Stock Market Tips For Tomorrow To Focus Before Investing Your Money
Author: Akash Rathore

6. Options For Short Term Business Loans To Buy Vehicles
Author: Secured Lending

7. Fixed Deposits - How To Open One
Author: Natasha Raikar

8. 5 Facts To Keep In Mind Before Investing In High Interest Fixed Deposits
Author: Natasha Raikar

9. 6 Reasons Why Fixed Deposits Are The Best Way To Save Money
Author: Natasha Raikar

10. 4 Best-fixed Deposit Interest Rates In 2018
Author: Natasha Raikar

11. How To Open A Current Account?
Author: Vani Malhotra

12. 5 Types Of Current Accounts In India
Author: Vani Malhotra

13. 4 Advantages And Features Of A Current Account
Author: Vani Malhotra

14. Faqs On Pmay Scheme
Author: Kaivalya Borde

15. How Does The Pmay Calculator Function?
Author: Kaivalya Borde

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: