How can you reestablish your credit score after declaring bankruptcy?

Millions of consumers in America are contemplating bankruptcy to discharge their overwhelming debts. But once you file bankruptcy your credit score might drop temporarily. Therefore, people who are struggling to come out from the vicious cycle of debt for them filing bankruptcy can be a preferable option than debt consolidationhttp://www.ovlg.com/debt-consolidation/. You should remember that you can rebuild your credit score immediately after bankruptcy. Therefore, you can start afresh by declaring bankruptcy and then start working on rebuilding your credit score.

Here are a few easiest ways to boost your credit score:

1. If you file under chapter 7 bankruptcy then the accounts you have incorporated while filing bankruptcy will display as $0 balance. The creditors are liable to notify about your delinquent accounts but if they inform the credit bureau then your credit score might drop. Therefore, you can request your creditors not to inform the credit bureau about it.

2. Make sure you do not close your old accounts as it might blemish your credit report and it may result in credit score dropping significantly. You can keep your old accounts active without incurring debt if you opt for a secured credit card. Try to spend limited amount that you have deposited in your account and if your accounts are active then it can help to improve your credit report. In case you pay your bills consecutively for 18 months without a single default then you can easily rebuild your credit score.

3. You can take out secured loan and ensure that you make the payment on time. This will help to boost your credit rating as your credit score is directly proportionate to your credit report. If you apply for a mortgage loan after bankruptcy the lenders will check last two years credit report before approving the loan application. Therefore, make sure that you make your payments on time to boost your credit score.

4. You can get loan against your savings account therefore it is a secured loan. When you use security deposit against a loan it is easier to get your loan application approved. But you should pay back your loan on time otherwise you might damage your credit score.

This is a guest post by Regina King who is a financial writer. With her advice many are now living a debt free life. You can reach me at: regina.king85(at)gmail(dot)com.

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