Rebuilding your credit after bankruptcy in Georgia
Georgians considering bankruptcy are frequently interested in learning about the best way to rebuild their credit after a bankruptcy is complete. Many are relieved to know that credit can often be repaired with careful planning and following some helpful steps.
There is life and good credit after bankruptcy. The truth is that filing for bankruptcy may be the fastest way for many people in Atlanta to rebuild their credit.
Reviewing your credit reports
The first step towards rebuilding your credit following bankruptcy is reviewing your credit report for errors. Errors and omissions from credit reporting agencies can impact your overall score. Addressing these issues sooner rather than later will get you that much closer to restored credit.
If you have not examined your credit report prior to bankruptcy, you should obtain a current copy of a credit report as soon as the bankruptcy is discharged. Request credit reports online or in writing.
The three major credit bureaus are Equifax, Experian, and TransUnion. There is normally a fee for requesting a report. However, if an individual applies for credit and is denied, a copy of the report on which the creditor based their decision is provided free of charge.
Review the credit report carefully. Correct any information or omissions and note them on the form provided. Return them to the credit bureau. They are required to respond within 30 days.
Building credit by paying bills and using credit cards
The second step for rebuilding your credit will involve staying current on your monthly bills. Fortunately, for many who go through the bankruptcy process, they have already learned tricks for managing their monthly expenses.
Next, you may want to consider applying for a secured credit card. A secured credit card requires money to be deposited in an account to be used as collateral. It is otherwise used in the same manner as a regular credit card. Charge only what is needed and make sure you pay it off each month. Do not exceed the limit or make late payments.
Accepting a pre-approved credit card offer is also acceptable. Many people in Georgia are surprised when they receive offers for credit cards following bankruptcy. Credit card companies know a second bankruptcy cannot be declared for eight years and one day after a bankruptcy, so they are assured of payment. Again, make sure payments are timely and pay off the balance each month if possible.
Request a credit increase every 12 months. Also, carrying a balance on the cards does not build credit faster. The fastest way to rebuild credit is to pay off balances each month whenever possible.
Obtaining retail or gas credit cards is more difficult than in the past. Many stores process their credit card transactions through just a few major lenders. Applying for a new card may flag a prior delinquent account. This usually results in a credit inquiry on a credit report and a denial of credit. As a result, credit suffers.
Finally, continue to pay bills on time. Bills that are still required to be paid during a bankruptcy such as rent and utility bills build the foundation for a new credit history.
Purchasing a car
Buying a new car is one of the best ways to rebuild your credit. Look for a dealer with a good reputation that advertises giving credit to “anyone.” A higher interest rate than someone with good credit may be imposed, but the loan can always be refinanced at a later date.
There is life after bankruptcy and obtaining credit after bankruptcy is possible. If you are considering bankruptcy, contact a knowledgeable Atlanta bankruptcy attorney who can provide guidance and assist you with rebuilding a solid financial future.