The fact is, after bankruptcy life changes, and if you want to restore your financial position, there are certain strategies one can use to improve one’s credit rating, but these are greatly helped by including them as part of an overall strategy prior to filing chapter 7 bankruptcy.
Tip 1. Your Accounts.
Your credit rating is an overall figure arrived at after taking into consideration your credit score with your individual creditors. Basically your creditors submit a number to the credit bureaux which is a reflection of their understanding of your financial record with them.
It is therefore important that when you file bankruptcy, you make sure that all your accounts are included. As long as they show zero balances you can legitimately ask your creditors to stop giving the credit bureaux your details - they don’t have to report, and if you could just get one or two to stop, your credit score will lift a little.
Tip 2. Credit Cards.
For many, credit card debt got them into trouble in the first place. However, to get credit, and improve your credit score, you must demonstrate that you can spend responsibly. As long as you are disciplined and pay off your balance at the end of the month, this will be seen as positive and reflect on your credit rating.
Tip 3. Get a Secured Card.
A secured credit card is a credit card that is limited in its credit limit to an amount equal to a deposit with the card issuer. In other words, you give the issuer a deposit of say $200, and the limit on your card is $200. This may raise the question as to why not just have a $200 cash budget and no card.
That way the agencies see you repaying your debt, therefore acting responsibly, and there is no danger to you of overspending, because if you cannot repay, you can use the money held on deposit.
Secured credit cards are perfectly legal, but issuers are sometimes not registered with the credit agencies. Always check that your card issuer is registered, otherwise the use of your card will not improve your credit score.
Tip 4. Get on Someone Else’s Card.
This is not actually using someone else’s card! All you do is find a friend or relative who has a good credit rating, and get them to include you as a name on the card. This way you actually benefit from their credit score, and they are completely unaffected by yours!
However, you will be affected by any lowering of the other person’s credit rating.
For a good number folk however, harsh economic events have conspired to make managing their debts impossible, and has left them wondering how to claim bankruptcy. If you are in that situation and need more free advice, visit www.howtoclaimbankruptcy.net.
