Chapter 7 Bankruptcy - Rebuilding Your Credit
There are many things that can show up on your credit report that will stop you getting a loan. A Chapter 7 bankruptcy is perhaps one of the most significant. Here is how to rebuild your credit once you file.
You can get a free copy of your credit report once a year from each of the three primary bureaus. It's worth looking at all three, as they do not always match perfectly. Read through these reports carefully to make sure all of your accounts included in your Chapter 7 bankruptcy were properly discharged. The last thing you need is to have both the filing and delinquent accounts on your report. If there are active accounts still on the report, contact the bureau and ask them to remove the incorrect information.
Talk to Your Bank
Your own bank is always a great place to start when it comes to rebuilding a solid credit history. While you may not qualify for a traditional credit card, you can apply for a secured card. A secured card is backed by your own checking or savings account. While it makes little sense for someone with great credit to apply for one of these cards, they do serve a fine purpose when it comes to establishing credit. Use the card, make the payments in a timely fashion, and your responsibility will be reflected in your credit report.
Keep Your Job
If possible, stay in your job. While this doesn't mean you should turn down major opportunities to enhance your income, you shouldn't switch jobs because you're bored. Lenders look at employment stability as a major factor when determining the viability of a potential customer. They may also look at your residential status, so try and stay in the same home as well.
If you have a father or an aunt with a great credit history, you might consider asking them if they will add your name to one of their credit card accounts. If they are concerned about your Chapter 7 bankruptcy and possible financial irresponsibility, you can assure them that you will never use the account. The point is simply to benefit from their credit history, which will be reported as part of yours.
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ABOUT THE AUTHOR
When considering filing for Chapter 7 bankruptcy Chapel Hill residents want a lawyer they can trust. For professional advice on your options, visit http://www.brownerlaw.com.