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.
To learn more about "fixing" your debt
visit: http://www
.fix-a-debt.com
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