Credit After Bankruptcy
With a bankruptcy mark on your report your score will be lowered considerably. However there is hope, you can remove this mark and by building some positive credit you can create a good score.
Contrary to popular belief this mark can be removed from your report and without waiting 10 years. To remove this mark we suggest:
1. Dispute the listing with the bureaus directly.
This is done by sending a dispute letter to the bureau; you can do this yourself or hire a service to do it on your behalf. The bureau will then conduct an investigation into the listing. However bureaus do not check public records when they investigate a dispute, thus the listing will not be verified.
Congress passed the Fair Credit Reporting Act and this says that the bureaus must remove any item on your report that can not be verified. People frequently ask if credit repair is legal. It is not only legal but this act explicitly says any mark you do not feel is accurate can be disputed. There will never be any legal ramifications for filing a dispute with the bureaus.
It is rumored that after 2 years it is easier to remove this mark, however it is not required. Additionally we suggest you make sure that any negative item on your report reads "included in bankruptcy." The reason for this is you will later dispute the validity of these items because your report does not show a bankruptcy.
2. Once you have removed the initial mark, you can start disputing each negative item.
You can dispute it on the basis that it says "included in bankruptcy", but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.
3. We suggest you start building positive credit. This is most effective by opening a new revolving line of credit such as a credit card.
By making your on time monthly payments you will create a positive payment history. Additionally keep your monthly balance at 25% of your available limit because this will show the bureaus that you do use your card and use it responsibly. This will improve your ratio of available credit to debt, a very important factor when your score is calculated.
While it is not illegal to dispute an accurate mark on your report it may not be the most ethical thing to do. However in my opinion charging people outrageous interest rates upwards of 30% and charging late fees is not ethical either.
In sum a positive payment history, report clear of derogatory items, and a good ratio of available credit to debt is the recipe for a 700 plus score. This will improve your quality of life by; saving you money on large deposits, high interest rates, and the embarrassment of a denial.
Contrary to popular belief this mark can be removed from your report and without waiting 10 years. To remove this mark we suggest:
1. Dispute the listing with the bureaus directly.
This is done by sending a dispute letter to the bureau; you can do this yourself or hire a service to do it on your behalf. The bureau will then conduct an investigation into the listing. However bureaus do not check public records when they investigate a dispute, thus the listing will not be verified.
Congress passed the Fair Credit Reporting Act and this says that the bureaus must remove any item on your report that can not be verified. People frequently ask if credit repair is legal. It is not only legal but this act explicitly says any mark you do not feel is accurate can be disputed. There will never be any legal ramifications for filing a dispute with the bureaus.
It is rumored that after 2 years it is easier to remove this mark, however it is not required. Additionally we suggest you make sure that any negative item on your report reads "included in bankruptcy." The reason for this is you will later dispute the validity of these items because your report does not show a bankruptcy.
2. Once you have removed the initial mark, you can start disputing each negative item.
You can dispute it on the basis that it says "included in bankruptcy", but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.
3. We suggest you start building positive credit. This is most effective by opening a new revolving line of credit such as a credit card.
By making your on time monthly payments you will create a positive payment history. Additionally keep your monthly balance at 25% of your available limit because this will show the bureaus that you do use your card and use it responsibly. This will improve your ratio of available credit to debt, a very important factor when your score is calculated.
While it is not illegal to dispute an accurate mark on your report it may not be the most ethical thing to do. However in my opinion charging people outrageous interest rates upwards of 30% and charging late fees is not ethical either.
In sum a positive payment history, report clear of derogatory items, and a good ratio of available credit to debt is the recipe for a 700 plus score. This will improve your quality of life by; saving you money on large deposits, high interest rates, and the embarrassment of a denial.
About the Author:
For a review of Lexington Law a suggested credit repair service www.lexingtonlaw.com visit us or for an article about how to remove a civil judgments.
posted by Credit Counseling at
2:11 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home