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7 Ways You Can Improve Your Credit Rating After Bankruptcy

Bankruptcy will of course, have a negative impact on your credit score. Though it’s important to realise that the negative impact will be less than letting your debts build up to a critical stage where you are dealing with debt collectors. It’s often best to accept that you are out of your depth and make a fresh start with a Chapter 7 or Chapter 13 bankruptcy.

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Just because you have been through bankruptcy, it doesn't mean that your credit score is irreparably damaged forever. These tips will help you work towards a healthy credit score as quickly as possible.

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Dedicate yourself to improving your credit score: With every debt you settle you will see an improvement in your credit report. Be strict with yourself and meticulous about getting debts repayed. Be prepared to make financial and lifestyle sacrifices.

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Regularly review your credit score: It’s that you ensure that your credit reports do not contain any errors. Take a look at your credit report every few months to check that everything is in order. As time passes, the score should improve, if it doesn’t you need to double check for mistakes.

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Address mistakes through official channels, in writing: Contact the agencies responsible for any errors via certified mail. Make sure all your details care included in the letter - full name, social security number, address, and D.O.B.. Specify exactly the mistakes made or wrong information. Follow that letter with phone calls until the errors and made good.

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Credit card applications: Secured credit cards are a good way to start rebuilding your credit. Secured credit cards are not like traditional cards. They work on a deposit basis, you put money on the card first and then spend it. The money that you pay upfront gives you a "line of credit" and that scores positive points for your credit score.

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Be intelligent and sparing in how you spend on the secured credit cards: Use these cards sensibly and often. Put as many purchases as possible on the cards, even small grocery shopping trips. It will all add up to show you are spending in a responsible way. Never let your deposit money dwindle to low, keep the cards regularly topped up.

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Never be late on repayments: Never miss a payment, never pay less than the full monthly total, and where possible pay back extra money Show that you have turned over a new leaf and are financially responsible. Credit agencies will be monitoring your spending and repayments and the better you perform the quicker your injured credit report will heal.

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Keep up the good work: You don’t want to end up back where you started, drowning in debt. Continue to control your spending and pay off debts quickly even after your bankruptcy is over. An simple rule to follow - if you can’t afford it, don’t buy it!

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If you want to discuss this topic further, please contact me at 281-847-4345 or rkemsley@kemsleylaw.com so we can discuss your individual situation and see if Chapter 7 or Chapter 13 would work for you and how we can help you set up a plan to pay the required fees. The consultation is free. Take the first step by calling me today. I look forward to hearing from you soon.

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