Experiencing bankruptcy can be one of the worst things in life. However, it doesn’t have to be a hopeless situation for you. If you’re worried that you won’t be able to regain a good credit standing once again, you are mistaken. True, a record of bankruptcy will remain in your report for seven years but it doesn’t mean you have wait that long before taking action. In this article, we will talk about the steps you can take to recover from the effects of bankruptcy.

The Best Way to Repair Credit After Bankruptcy

Can you still get approved for new accounts if you have a record of bankruptcy in your credit report? The good news is, yes! You can still get an approval from lenders, provided that you take the correct steps right away. Consider the following advice:

Check your credit report. Order a copy of your credit report from three three major credit bureaus (Equifax, TransUnion, Experian) so you can personally check the accuracy of the information. In case of any error, do not hesitate to call the credit bureau that issued your report and request for corrections. Don’t forget to send a dispute letter through registered post mail as a follow up to your call.

Sent a letter to the credit bureaus. You can send a personal note to the three major credit bureaus and request for your note to be included with your credit report each time a prospective lender makes an inquiry. Your personal note may explain the factors that forced you to file for bankruptcy. Thus, if a prospective lender can see the events beyond your bankruptcy situation, they are more likely to give you a chance. This step applies if the events that let you to bankruptcy are inevitable or beyond your control such as illness, unexpected lost of job, or divorce).

Apply for new credit. You need to try to open new accounts as soon as you’ve been discharged from your debts. Why? So you can start building a new credit history for yourself. If you search the market, you can find that some lending companies extend bad credit loans for people who have been discharged from bankruptcy.

Stay away from credit repair scams. Having to deal with the whole process of bankruptcy may leave you in a vulnerable state. Predatory lenders and “fake” credit repair agencies may take advantage of your desire to regain good credit history by making false promises. Some agencies may promise to erase negative remarks from your credit report in exchange for a fee. However, there is no such thing as instant credit repair.

The only way you can regain a good credit standing is by opening new accounts and staying consistent with your payments. If you’re not sure of what to do, seek help from a trusty-worthy credit counseling agency.

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