Personal -
Credit Card Debt: Repair After
Bankruptcy
Ah, credit card debt. You've asked yourself the question many times,
"Will I ever get credit again?" The answer, although seemingly complex,
is quite simple: Yes. You can have another chance at re-establishing
your credit. Filing bankruptcy is the first intelligent step taken to
wiping out accrued credit card debt. The next step you'll have to take
is to repair your credit report. In order to do this, you'll need to
develop great patience while you're re-establishing your credit, as
these things do take time.
Two or three years after you've eliminated credit card debt by filing
bankruptcy, you'll want to start rebuilding good credit. How, you ask?
Apply for secured credit cards. Preferably cards without annual fees
attached to them. Do your research on the internet to see what others
have done in similar situations. If you come across an offer which looks
to good to be true, it most likely is. Use discretion when giving out
Social Security numbers and personal information online.
Start small. Don't expect anyone to hand you a $10,000 credit limit
overnight. You've had a history of credit card debt, it's not going to
happen. Make lenders trust you again. Make monthly payments in the full
amount. Your payment transactions will determine how successful your new
credit report will be. If you're late with payments you're heading in
the wrong direction. You don't want to end up on the road to credit card
debt or bankruptcy again, do you? Of course not.
The stronger your current financial condition is, the better
candidate you may be for future credit. Convince lenders that you've
left the past behind you. You've changed your ways. Show them how you've
handled money since the bankruptcy. Prompt payments made in a full
amount are very impressive to a credit lender. If you're denied a major
credit card, don't get distraught. Try applying for a department store's
line of credit or a card issued by an oil company. These are some small
steps to a successful debt-free future.
It's also important to keep an eye on your credit report. Make sure
that everything is accurate and appears is it is supposed to. Errors,
which can go unacknowledged will only harm you in the future. Your local
bank can give you a copy of your current credit report for a nominal
fee. However, if you're a legal resident of the United States, you are
eligible to receive free credit reports. Specifically, one credit report
per year.
In 2005, the Federal Trade Commission announced that every United
States citizen is eligible to receive one free credit report on an
annual basis, regardless of where they live. This was wonderful news to
Americans everywhere. To receive your free credit report, you must
supply proof of your identity. Questions you may be asked will include:
your name, address, social security number, and a personal question [for
security purposes] that only you will know.
Nevertheless, be very careful. There's a wide number of companies who
will promise free credit reports. But are they legitimate? Anyone can
build a website and claim that they're a credit agency. Why risk giving
out your personal information to a stranger? Identity theft has become
increasingly popular. Don't fall prey to a fraudulent credit agency that
you know absolutely nothing about. Do some background research on the
company prior to using their services. If you can't find any information
relating to their services they're probably not very trust-worthy.
Credit reports can be received online or through physical mail. Be
certain that the company which is offering free credit reports is being
employed by the FTC. Bear in mind, anyone can say they're affiliated
with the FTC. Make sure that they're legitimate. Such a fiasco occurred
recently on the internet. Thousands of people were taken advantage of
when they filled out a form for a "free credit report." Don't give out
your information to anyone but a trusted bank, a reputable mortgage
broker, or an agency employed through the Federal Trade Commission.
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