Get A Secured Credit Card
Reducing your dependence on credit cards can be an important step toward rebuilding credit after bankruptcy. However, the strategic use of secured credit cards can also help you begin to repair your trustworthiness in the eyes of lenders.
Taking out a secured credit card requires making a refundable security deposit and then borrowing against it. While these cards tend to come with high interest rates, if they report to all three credit bureaus, theyre a great option to show responsible credit behavior until youre better qualified for a traditional card with more competitive terms.
Some secured cards even allow you to graduate to an unsecured card after consistent on-time payments. This is a benefit since you wont have to apply for a new, unsecured card when your credit improves,
Keep in mind, however, that applying for a secured card doesnt guarantee acceptance, so take time to research the providers requirements before applying. If possible, choose a provider that offers prequalification so you can see whether youre likely to qualify before agreeing to a hard credit check that can further damage your score.
How Credit Repair Can Help Your Credit Scores
Your credit scores are calculated from information in your credit reports. A Federal Trade Commission study found about 5% of consumers had errors on their credit reports that could significantly lower their scores.
That’s why it pays to check and fix your reports. Through April 2022, youre entitled to free weekly credit reports from the three major credit reporting bureaus Experian, Equifax and TransUnion by using AnnualCreditReport.com. In addition, NerdWallet gives you free access to your TransUnion report.
Legitimate credit repair services check your reports for information that shouldn’t be there and dispute it on your behalf. Many of them also check to be sure the information does not reappear. Sometimes information that’s accurate but cannot be substantiated also has to be removed, although it may be reinstated if it’s verified later. An example might be a debt to a retailer that is now out of business .
Among the errors that can be addressed:
Accounts that do not belong to you.
Bankruptcy or other legal actions that were not yours.
Misspellings, which may mix in negative entries that belong to someone with a similar name or may mean positive entries aren’t showing up when they should.
Negative marks that are too old to be included.
Debts that can’t be validated and verified.
It is true that lower rates go to borrowers with higher scores. But it is also true that you can handle credit repair yourself.
Send The Courts Response To The Credit Bureaus
Send the statement from the court to the credit bureaus with a letter asking to have the bankruptcy removed. Mention that the bureau knowingly provided false information and has violated the Fair Credit Reporting Act.
If all goes well, removal of bankruptcy should occur.
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Send A Request For Goodwill Deletion
Like pay-for-delete, writing a goodwill letter seems like a long shot, but its an option for borrowers who want to exhaust every possible alternative. Write to the creditor and ask for a Goodwill Deletion. If you have taken appropriate steps to pay down your debts and have become a more responsible borrower, you might be able to convince the creditor to remove your mistake.
There is no guarantee that your plea will get a response, but it does get results for some. This strategy is most successful for one-off problems, such as a single missing payment, but it may be futile for borrowers with a history of missed payments and credit mismanagement.
When writing the letter:
- Assume responsibility for the issue that caused the account to be reported to begin with
- Explain why the account was not paid
- If you can, point out good payment history before the incident
To Remove A Bankruptcy From Your Credit Report Youll Need To Find Evidence That The Bankruptcy Was Reported Incorrectly Otherwise It Will Only Come Off After Seven Or 10 Years Depending On The Type Of Bankruptcy
Beyond the stress and inconvenience that comes with filing for bankruptcy, it can have a long-standing impact on your credit report and score.
Fortunately, that negative impact can be mitigated with the right help.
Removing A Bankruptcy From Your Credit Report
As stated above, it is challenging to get bankruptcies removed from your credit report, but not impossible. The duration of a bankruptcy on your credit score depends on the type of bankruptcy.
Chapter 7 has a maximum of ten years, and chapter 13 has a maximum of seven years. But, these are only maximums. Since there is no minimum, it is possible to get it removed from your record sooner.
This guide offers a possible way to remove a bankruptcy record from your credit report. However, it is always best to verify these facts beforehand. Ensure the court you contact doesnt verify bankruptcy information with credit bureaus and always consider getting expert advice.
Is It Even Possible To Get A Bankruptcy Removed From Your Credit Report
We want to be upfront and transparent: its very hard to get a bankruptcy removed from your credit report. If all information is accurate and complete, it is not possible to remove a bankruptcy from your credit report. But if the bankruptcy entry contains any inaccurate or incomplete information, it may be possible to have it removed.
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Dont Get Scammed Check Your Credit Reports
About four months after bankruptcy, go to AnnualCreditReport.com to get copies of all three of your credit reports.
If you cant get the free reports, go to Experian and get their All-In-One 3-Bureau Report that will also include information from Equifax and TransUnion.
A few pointers:
- Dont try to start your credit repair after bankruptcy immediately. Each creditor and debt collector updates credit information, but some do so every 90 or 120 days. Its best to wait a few months before you check your reports.
- AnnualCreditReport.com is the official way to get a free copy of your credit report each year.
- Make sure you get all three credit reports because each one contains different information. A lender may access any one of the reports when making a decision on whether to extend you new credit. You should check them all for your protection.
Can I Remove A Bankruptcy From My Credit Report On My Own
It is possible to pursue removing a bankruptcy from your credit report on your own, and some people have managed to do so. However, it is a time-consuming, labor-intensive process that many people find complicated, confusing, and frustrating.
We encourage you to learn as much as you can about credit report disputes and credit repair processes, then count the real cost of DIY credit repair before committing to handling this important task on your own.
People who have needed to remove a bankruptcy from their credit reports have achieved success by working with a provider like Lexington Law Firm. If other questionable negative items are affecting your credit report and score, we can help you challenge those as well.
Contact us today for a free personalized credit report consultation to find out how we can help you meet your credit goals.
Reviewed by Vincent R. Mayr, Supervising Attorney of Bankruptcies at Lexington Law. by Lexington Law.
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Review Each Credit Report
Once your bankruptcy case ends, the federal Federal Trade Commission says that all debts need to be updated to show a $0 balance due.
Reporting the debt any other way is inaccurate under federal law. Debts charged off before bankruptcy may also show that information.
You should look at each tradeline on every credit report to ensure that the debt is showing as having $0 due.
If theres an inaccuracy, send a dispute to the credit reporting agency. Be clear about which account is imcorrect, and send proof of the bankruptcy discharge.
Send the letter by certified mail. Keep a copy of the original signed letter and the certified mail receipt card.
Sky Blue Credit: Best Value
Sky Blue Credit is the best credit repair company if youre looking for transparent pricing and excellent value. Rather than offering multiple credit repair options and service levels to choose from , Sky Blue Credit offers all of its services for a flat-rate of $79 per month.
Sky Blue Credit Repair disputes 15 items on your credit report every 35 days. This is a great value compared to credit repair companies that only dispute items every 45 to 60 days, charging you monthly fees during the process.
Once you sign up with Sky Blue Credit, youll be provided a detailed analysis of your credit history including any hard-to-spot errors that could be harming you. Once problems are identified, the Sky Blue credit pros will send customized disputes on your behalf. They also will send re-dispute letters if necessary, to maximize their chances of success. They also check on the statue of limitation for any debt you have as well.
Sky Blue offers their services free of charge for the first 6 days while they gather your reports and also offers an impressive 90-day money back guarantee. If youre looking for the top credit repair services while on a budget, Sky Blue Credit is a great option to consider.
- Clean Up Errors on Your Credit Report
- All Services Included For One Low Monthly Rate
- No First Work Fee and No Charge For The First 6 Days
- 90-Day Money Back Guarantee
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The Credit Repair Organizations Act
The makes it illegal for credit repair companies to lie about what they can do for you, and to charge you before they’ve performed their services. The CROA is enforced by the Federal Trade Commission and requires credit repair companies to explain:
- your legal rights in a written contract that also details the services they’ll perform
- your three day right to cancel without any charge
- how long it will take to get results
- the total cost you will pay
- any guarantees
What if a credit repair company you hired doesn’t live up to its promises? You have some options. You can:
- sue them in federal court for your actual losses or for what you paid them, whichever is more
- seek punitive damages money to punish the company for violating the law
- join other people in a class action lawsuit against the company, and if you win, the company has to pay your attorney’s fees
Can You Remove Bankruptcy From Credit Report
By | Submitted On May 05, 2008
There are a lot of people who are forced by circumstances to declare bankruptcy. Unfortunately, once they have declared bankruptcy, their credit score goes south fast. You might as well have the words “risky” and “unworthy” tattooed on your forehead. It is highly doubtful if you would be able to secure loans when you have a history of bankruptcy. This does take a toll on your credit score, and often, your credit score will take a plunge.
Can you remove bankruptcy from credit report? Many people will argue that you cannot. They’d point out the “impossibility” of removing it from your credit report. However, you definitely can do something about it. Bankruptcy is disputable. You can dispute it the same way you can question other derogatory accounts on your report.
“But that account is truly mine! How can I dispute it?” Take note that whether the record or account is truly yours – it doesn’t matter. The question that would be asked by the credit bureaus is – “Can it be verified?” If an account is verifiable, it stays. However, if the bureau cannot verify the account, it can be deleted from your credit report. The burden of proof here does not even rests on you. It rests on the credit bureau concerned. So, can you remove bankruptcy from credit report? Yes, you can.
To learn more on how to get totally free credit report information try visiting also get free credit repair help to find some good advice on better understanding 24 hr credit repair .
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The End Of The Process
Investopedia: How can you tell that your credit has been repaired?
Weisman: You can determine if your credit has been repaired by checking your credit reports and credit scores with each of the three major credit reporting agencies however, you should regularly follow up checking your credit report and credit scores because sometimes inaccurate information that harms your credit score is removed after being disputed, but reappears on your credit report, thereby lowering your score later.
How Long Do Inquiries Stay On Your Credit Report
Experian, Equifax, and TransUnion track hard inquiries on your credit reports for 24 months. Interestingly, FICO credit scores are only impacted once per year by the hard inquiries reported to the three bureaus. The impact of each pull wanes over time.
Typically, they lose all effect on credit scores after one year. Soft pulls also remain on your credit history for two years, but they dont affect your credit score. You can dispute hard pulls, but not soft ones.
The reason that creditors look at the number and frequency of hard credit pulls is that the inquiries could indicate financial risk. For instance, multiple inquiries may be a warning sign that you have financial difficulties and/or your finances are overextended.
Before granting you a loan or line of credit, lenders will want to ascertain whether your finances are so poor that you may not be able to make full and timely payments.
You can shorten the time an inquiry remains on your credit report by winning a dispute with the credit bureau. To win the dispute, you must report that a company or individual pulled your credit without your permission or knowledge.
Alternatively, the credit pull may have been incorrectly assigned to you whereas another person received the inquiry. This underscores the importance of monitoring your credit reports for false or fraudulent activity. To remedy the problem, you must write a letter to the credit bureau asking it to remove the inquiry from your credit history.
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Mistake #1: Missing Payments
Another credit repair mistake some people make happens when they miss payments on some accounts to make paymentsâor larger paymentsâon others. The only exception might be if the account in question has either already been charged off or gone to collections. If choosing between paying a collection account and one that is current, always pay the current account to keep it that way.
File A Dispute Directly With The Reporting Business
Reporting businesses include credit card issuers and banks. Upon receiving a dispute, they are required by law to investigate and respond. If the reporting business corrects the issue, you saved yourself the step of contacting the credit reporting agency. It is vital to make sure the items are cleaned up for all three credit bureaus mentioned above.
However, trying to work out your debt directly with the lender will not necessarily change the amount of time said negative item would remain on your credit report. It will only change if the dispute is resolved with the lender and deleted from your credit report.
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Goals Of Credit Repair
The goals of credit repair, are not just to repair credit, but also to use advocacy and strategic skills to bring up credit scores by legally diminishing or eliminating negative items listed on the credit report and increasing positive items listed on the credit report. By law the information report on the credit report by the major credit bureaus needs to be not just true and accurate but also fair and verifiable. Therefore credit reporting can be challenged if it can be alleged that it fails to meet these standards. Credit reporting deals with any debt, but most of the creditors who report are institutional creditors or banks and institutional lenders who are supposed to keep records of the items they report. The reality is that those records are often less than ideal and items are often misreported. When our office first meets with a client we obtain a credit report so we can decide with our clients which items the client can contest and set up a plan to improve their credit report by challenging these items.
How Long Does A Bankruptcy Stay On Your Credit Report
The length of time youll see a bankruptcy stay on your credit report depends on what type it is. For example, a Chapter 7 bankruptcy stays on your credit report for 10 years from the date the bankruptcy was filed. On the other hand, a Chapter 13 bankruptcy remains on your credit report for just seven years from the filing date.
However, contrary to popular belief, you can remove a bankruptcy from your credit report early, and you can get credit after a bankruptcy. You do NOT have to wait up to 7 or 10 years after the bankruptcy filing date to get a mortgage, car loan, or any other type of credit again.
In fact, it usually only takes a couple of years to get access to loans and credit cards again. However, once you do start to qualify again, you may be paying extraordinarily high interest rates.
Rather than getting stuck with high interest rates and low balance maximums, work on negating the effects of bankruptcy as much as possible. Then, between disputing the bankruptcy itself and taking concrete actions to rebuild your credit history, you can get much better offers for credit cards and loans.
One mistake doesnt have to set you back financially for the next ten years. Read on to find out how to get a bankruptcy removed from your credit report and other ways in which you can recover from having a bankruptcy on your credit report.
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