One of the best things about getting a fresh start by declaring bankruptcy is that it allows you a chance to rebuild your credit score. The first step in re-building your credit is to eliminate debt. With less debt, meeting your remaining financial obligations should be easier, provided you manage your finances well. Second, you should make sure to remove any negative information that remains on your credit reports with the three major credit reporting agencies. After your bankruptcy is complete, any debt discharged therein should be listed on your credit report as included in the bankruptcy with a zero balance. If the information regarding these debts is not updated, the accounts could still appear to be active, which could limit your ability to get credit.
In order to check the accuracy of your credit reports, you should order a copy of them to make sure all your discharged debts are listed as being included in your bankruptcy case and now show only zero balances. You can contact the three major credit reporting agencies online at:
• Trans Union: http://www.transunion.com
• Equifax: http://www.equifax.com
• Experian: www.experian.com
Other valuable tips to help rebuild your credit after bankruptcy include:
1. Establish accounts that will report positive information on you. Get a single credit card with a small credit limit, use it sparingly and pay the entire balance each month.
2. Repay all bills in a timely manner. Most credit cards and utilities report late payments. After your bankruptcy, late payments will continue to paint you as a bad credit risk to creditors.
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