Filing Personal Bankruptcy Help

The fact is, after bankruptcy life changes, and if you want to restore your financial position, there are certain strategies one can use to improve one’s credit rating, but these are greatly helped by including them as part of an overall strategy prior to filing chapter 7 bankruptcy.

Tip 1. Creditor’s Accounts.

It’s important that you understand how your credit score is compiled. It is not just a single agency that gives the rating, but data that the agency receives about your credit position from your creditors. This is analysed and your score worked out.

It is therefore important that when you file bankruptcy, you make sure that all your accounts are included. As long as they show zero balances you can legitimately ask your creditors to stop giving the credit bureaux your details – they don’t have to report, and if you could just get one or two to stop, your credit score will lift a little.

Tip 2. Credit Cards.

There is something of an irony here, in that it might well have been credit cards that caused the problem, and yet they can also perform a useful role in getting your credit rating higher. A credit card after bankruptcy, if you can get one, is a means of showing that you can borrow and repay debt responsibly, which is what the credit agencies are looking for.

Tip 3. Secured Credit Cards.

A secured credit card is a credit card that is limited in its credit limit to an amount equal to a deposit with the card issuer. In other words, you give the issuer a deposit of say $200, and the limit on your card is $200. This may raise the question as to why not just have a $200 cash budget and no card.

That way the agencies see you repaying your debt, therefore acting responsibly, and there is no danger to you of overspending, because if you cannot repay, you can use the money held on deposit.

Just be certain that the card issuer is registered with the credit bureaux, otherwise the card will have no bearing on your credit score.

Tip 4. Get on Someone Else’s Card.

Having your name put on someone’s card is not the same as using it, and indeed you don’t need to. As long as they have a good credit rating, this will reflect back on yours, without even using it! The other thing is that the other person will not be disadvantaged by your poor credit hstory.

However, you will be affected by any lowering of the other person’s credit rating.

For a good number people however, harsh economic events have come together to make repaying their debts impossible, and has left them wondering how to claim bankruptcy. If you are in that situation and need more free advice, visit www.howtoclaimbankruptcy.net.

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4. Can A Credit Card Improve Your Credit Score?
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7. Why A Bad Credit Rating Is Important
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