What can I do to improve my credit rating?

Question

I filed for Chapter 7 Bankruptcy eight months ago. I received a total discharge of all of my debts seven months ago. What can I do now to start improving my personal credit rating? Thank you for your assistance.

I was forced to declare bankruptcy because of unexpected medical bills. This absolutely was not my fault. Over half of the bankruptcy filings in America are caused in part by medical bills.

Answer 1

the main thing to keep in mind is to avoid by hook or crook anything negative going on your credit from this point on forward.
This means keeping control of your credit and making it work for you. This means not being late on any bills at all ...whether its your home phone bill, cell phone bill, electricity bill, water bill...whatever. In fact, you could use those utility bills in some instances to show that you pay some bills on time even though you have no current active profile. Next I would make sure I have enough income to pay my living expenses and be able to save some money and have reserves, have proper insurance on all that needs insuring, your car, your house, etc... if you feel comfortable at that level, you can open up a secured credit card account, you can use your savings to get a secured loan from your bank. These are 2 easy ways to restart a positive credit profile. Keep the payments as low as possible and make sure you make any payment on those loans on time for at least a year. Down the line,you may want to buy some furniture, if it cost $500 maybe you could pay most of it in cash and take out a loan for $200 to be paid over one year..etc... Again make sure you pay that bill on time. Beware of high interest loans made by car dealers to people in your situation. Make sure if you need a car you dont bite off more than you can chew. They often sell people expensive used cars with big loans with high interest rates..cars that you cannot return if something major happens like the engines falls on the pavement as you drive it home from the dealer. These are some of the ways you can start regaining credit and keep it clean. If you can this positive credit going over time your old negative credit profile will disappear and only the good credit that you have rebuild will show.

Answer 2

I've been there and there is life after bankrupt's. Did you know Abe Lincoln field chapter 11 two times. I know it is hard but thank God we live in a country that believes in second chances. Financialy speaking.

Pay Cash
Don't carry a balance on credit cards
Pay all your bills on time

After two years you will be able to get loans but at a higher interest rate. Chapter 7 is completely over with after seven years as far as the court is concerned but it does stay on your credit report for 10 years.

My credit Score was 610 after I had to file and is up to 718 after 6 years. That is about as good is it is going to be. regardless what I do.

Answer 3

after filing banruptcy your credit is basically ruined for 10 years. It used to be 7 years but with the new bankruptcy laws I believe it is 10 years. To begin repairing your credit the best option would be to acquire a credit card. NEVER run it up to its limit. ALWAYS pay it off completely every single month. Your credit score increases with consecutive on time payments and available open credit. Never close a credit card because that could hurt your credit. The more AVAILABLE credit you have the better, that's why it is always good to use your credit card every month but pay it off immediately leaving a ZERO balance. Late payments are your worst enemy!

Answer 4

"Brother different" is nice. Your FICO score is going up while the ratio of credit available to credit used is going up. besides the shown fact that, as nicely to what else is published, your credit is laid low with the conventional length of time credit enjoying cards are held. This penalizes people who change enjoying cards in lots of situations to get the introductory fee, then cancel the cardboard while the fee is approximately to flow up and get yet another card. on account that credit history is a significant ingredient too, the main suitable approach is in no way be previous due in paying and preserve older enjoying cards.

Answer 5

Pay off any bill on time. Save as much money as you can so that anything unexpected won't mess up your budget. Make a budget! Don't get a credit card until you have control over yourself.

Answer 6

Really I'm surprised that you would have any credit.
Personally I don't think you deserve any so soon after filling.
My advice is pay cash until you learn how to budget better.