4 Credit Score Bankruptcy Tips Chapter 7 or 13
4 Credit Score Bankruptcy Tips to help you improve your credit score right after bankruptcy.
How to improve your credit score after bankruptcy. I’ve seen people go through bankruptcy and then suffer for five or six years because they don’t actively engage in their credit history after the Bankruptcy. Consumer’s think they have ruined their credit and give up. It is the wrong time to do that.
The day after the consumer’s bankruptcy settlement date, they should go through their credit report and make sure that every account that should have been included in the bankruptcy is showing that way on their report. Be sure to check all three repository files; TransUnion, Experian, and Equifax.
The second thing to look for is an account that was not included in the bankruptcy but has a pretty good history. One or two accounts that maybe were not used in a while. See if you can keep them active. Let’s say a Lowe’s or a Home Depot. Something that was not included in bankruptcy that can be pulled through the bankruptcy. That will give you a long history. A long credit history is very important for a good credit score. So pull as many accounts through bankruptcy as you can. Accounts that have never been late are the best, that’s a great way to rebound credit scores quickly.
The third thing to do is get three bank credit cards. If you are able to pull three through the Bankruptcy, then I would say they are in good shape, add maybe one or two. If not, then consumers need to reestablish their credit. The goal should be three to five bank credit cards total. Make sure the new credit cards are being reported to all three repositories. A credit union is fine, just make sure that they report to all three of repositories. I see many people go to a Credit Union that only reports to one of the three repositories and while that one repository score goes up. When that borrower applies for a mortgage or for an auto loan, the auto dealer may not use that specific repository. Then the consumer will not benefit from that account. Go to a lending institution that reports their information to all three repositories. That is the only reason I recommend a big bank.
Number four is apply for a small installment loan. Again go to a bank or credit union that will report to all three repositories. Apply for a small installment loan just a few thousand dollars. Put the money in a bank account, don’t spend it. Don’t get a car loan because it’s too much debt, just get a few thousand dollar installment loan make the payments on time and then pay ahead a little bit. A two year installment loan would be fine, with bankruptcy, borrowers have to wait two or five years before they can get a mortgage anyway (consult a mortgage lender on that)
I’ve seen people recover to nearly 700 FICO® score, just six or seven months after the bankruptcy, there is no reason to suffer and insurance rates are based on consumer’s credit score so why suffered even further.
Four ways to improve your credit score after bankruptcy. Check out my free video series six steps to improve your credit score @ www.getloanready.com walk through that and that will help you as well.
4 credit score bankruptcy tips
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