How do you fix your credit after a bankruptcy?

Discussion in 'Economics' started by TraderTactics, Jan 22, 2010.

  1. I am not sure if this topic is in the right thread but I just want to ask some insights or tips in fixing a credit score after filing a bankruptcy.
  2. there is not much you can really do. the bankruptcy will always be on your record. the best thing you can do is not be in a position to borrow.
  3. The first thing I would try is to open a checking account with overdraft privledges or a small line of credit ($500) tied to your checking account, also a savings account and Christmas club account with the same bank.

    Generally, it's a don't call us we'll call you type of situation, credit offers will come in the mail but these are unusual times so it may be a while before you or anyone receives unsolicited offers.
  4. Its not even worth you trying to fix it. Last year I got turned down for a fully secured loan and my credit score was over 700. There is nothing you can do to remove that bankruptcy except wait 10 years. The best you can do is maybe get the double entries removed from your credit report (when you claim BK, they often put 2 entries on your credit score, one from the debt from the creditor and another for the same debt listed as being covered under the bankruptcy. You can get the first one removed, but even if you clean it up as good as you can, do not expect to have a score better than 620 for a few years and even with 620, you cant get approved for anything.
  5. maxpi


    My advice to people is to not file bk if it's over small stuff like credit cards. Better to just default and dodge the collections people. I did that and three years later my credit score is 695 an there is still one defaulted account open. The closed accounts don't say "closed, never past due", they just say "closed" so my chances of getting a loan are pretty iffy. I'm going into a rental agreement currently and they said that 695 was fine but they might not like the notations. It might cost me a little more to get into the rental but maybe not..
  6. people have no idea how damaging a BK is to you. In addition to making loans/mortgatges harder, it drives up your insurance rates (incl car) and makes it a lot harder to get professional jobs.

    If $200K owed, fine. When $15K, avoid at all costs.
  7. Not true. After 10 years, credit reporting agencies can't list it. Might even be 7, but I do know that Bktcy can't be listed by a credit reporting agency, Equifax, Transperian, etc, after a certain # of years.
  8. Although it comes off your credit report those dang credit applications "ask" if you ever filed bk, then what? Even if it's off your report you have to check off the box on the app.
  9. the county court keeps a record of bankruptcy for up to twenty years. sometimes more. i used to be a bankruptcy clerk in england. it might be different in america.
  10. No you don't. After 10 years you are not required to tell them of a bankruptcy. It completely disappears from your credit report. I know this because I did a bankruptcy as a stupid 20 year old that racked up about 20 grand in credit cards and a vehicle I couldn't afford.

    My credit score is now virtually perfect at a score of 780 about 11 years later. The key is to declare bankruptcy as quick as you can and to get a credit card as quick as you can. In fact, I kept one credit card "to the side" and didn't report it during the bankruptcy. I then used it after the bankruptcy and kept a very small balance on it and paid it every single month. I haven't missed, or been late a single payment in 11 years either. that's the other key. At all costs do NOT EVER pay a payment late and always pay slightly more than the minimum.

    Another thing, it takes about 3 years before the bankruptcy stops having a major affect. After that, you can get your score into the high 600's/low 700's. The big kick in score doesn't come until literally the 10th year when it falls off. My score jumped 50 points when it fell off.

    Also...don't apply for credit frequently. Space them out really once a year if at all possible. The key is to pay on time, not look desperate by inquiring about a lot of credit, and keep your balances low (but always have a balance) on your credit cards, and finally, always pay more thean the minimum.
    #10     Jan 22, 2010