Most people think that after credit card bankruptcy, it is not possible for them to repair their credit quickly. However, this is not true as bankruptcy does damage to your score but it can also be reversed. You can again get a good credit score by fixing some errors in your credit report.
To get a good credit score, you can take the help of a reliable and well-recognized credit repair agency. The agency will give you complete professional guidance on how to rebuild credit and how to repair credit card after bankruptcy.
Here are some of the necessary steps that you need to take to repair your credit card after bankruptcy.
- Credit Report Should Reflect Bankruptcy Properly
It is important to show your bankruptcy on your credit report properly. You should get the help of a credit reporting agency when your discharged debts are showing alive. It might cost you a few bucks but it is worth spending money. You should send each copy of discharge quickly to creditors so that they do not report further.
- Pay Non-bankruptcy Accounts on Time
It is not necessary that all of your accounts will go into bankruptcy. For example, a student loan cannot be discharged and thus you should pay your loan in a timely manner. Positive payments are very effective in improving your credit score. All your account payments that are not included in bankruptcy can be reported later.
- Get New Credit
To rebuild your credit score, it is very important that you secure your new credit. As after bankruptcy, you cannot declare bankruptcy after seven years, so some credit card companies approve the new credit. This new car will be very helpful in making a small purchase. But make sure that you pay the balance every month.
It is better to use a secured credit card but most of the credit card companies convert it into unsecured after the regular payment of one year.
- Have a Co-Signer
To reestablish your credit card after bankruptcy, it is important that you find a co-signer. Make sure that you choose a trusted and reliable friend or family member as a co-signer. This will ensure that you maintain a spotless payment record. If you fail to pay the payment on time then it will affect the credit report of your co-signer as well.
- Make New Credit Card Payments on Time
It is important to make your new credit card payments on time for both secured and unsecured cards. Make sure that you pay the balance in full otherwise it will lead to trouble again. Every time you fail to make a payment on time, it will add a bad spot in your credit report for the next seven years.
- Keep Your Balances Low
To maintain the best credit score, it is important that you keep your credit card balances low. It is all about how much you charge in the first place rather than the amount of balance you pay every month. Make sure that you charge up to only 20-30 percent of your total limit. If you can keep it less than 10 per cent then it will bring you the best results.
- Do Not Apply for Multiple New Credit Cards
Your credit score is also gets affected by the number of credit cards you apply within a specific time period. It is always recommended to avoid applying multiple credit cards and loan applications quickly.
Make sure that you good a reliable credit repair agency that can tell you properly how to rebuild credit and how to repair credit card after bankruptcy.