If a consumer wants to know how to improve their Credit Score after bankruptcy, the best advice I can give is to create a budget and stick to it. If you are disciplined and diligent, you will re-build your credit over time.
Delray Beach, FL (PRWEB) October 12, 2009
NationalCreditReport.com, a leading provider of free Credit Reports, free Credit Scores and credit monitoring services, announced tips to help consumers improve their Credit Scores and make corrections on their Credit Reports, including how to improve a Credit Score after bankruptcy.
- Pay your bills on time and pay the full amount due (even if it's just the minimum payment). One missed payment can significantly impact your Credit Score.
- Do not max out your credit cards. Ideally, keep the balance on any credit card below 30% of the total credit allowed.
- Do not close credit card accounts you are no longer using. Closing an account with a zero-balance can actually hurt your score. Destroy the card but keep the account open.
- Make corrections and update any inaccuracies on your Credit Report. Although it can take time, getting these errors taken off will help improve your score over time.
- Do not apply for several offers for credit at one time. This may not only be a signal that you are planning to take on more debt, but could also cause your Credit Score to decline. Every time a potential creditor pulls your report before extending new credit, your score takes a small hit.
Under the Fair Credit Reporting Act (FCRA), both the credit repository and the information provider that gives the consumer's information to the credit repository are responsible for making corrections on Credit Reports. If consumers find errors in their Credit Reports, they are entitled to submit a Credit Report dispute to remove inaccurate information.
Samuel S. Ambrose, NationalCreditReport.com's Vice President of Marketing & Operations, said, "If you are concerned or just curious about your credit, NationalCreditReport.com will provide you with a free copy of your Credit Report and Credit Score. Understanding the details of your Credit Report and score is essential, particularly if it needs improvement. Consumers often ask how to improve a Credit Score, especially after bankruptcy, and it's important to know that it can take seven years or more to get a bankruptcy removed from your credit file. In addition, every consumer should be aware of what financial institutions know about you based on what is reported in your credit history, all consumers should take the time to make sure their credit information is correct and routinely check their Credit Reports for accuracy."
After seven years, most negative information in your Credit Report is automatically deleted. Under federal law, the seven years begins 180 days from the date of the original delinquency. A Chapter 13 bankruptcy, which includes some debt repayment terms, remains on your Credit Report for seven years. A Chapter 7 bankruptcy is typically deleted after 10 years from the filing date. Otherwise, negative information will remain in your file for the period allowed by law. If you decide to submit an explanation to the consumer reporting agency, you may include in a 100-word explanation to explain any extraordinary circumstances that led to the bankruptcy, such as the loss of a job or illness.
Continued Ambrose, "If a consumer wants to know how to improve their Credit Score after bankruptcy, the best advice I can give is to create a budget and stick to it. If you are disciplined and diligent, you will re-build your credit over time."
NationalCreditReport.com's services include three different products that offer identity theft and credit fraud protection nationwide. Each product includes identity theft insurance; credit monitoring and reporting, and free Credit Scores. For more information about which protection plan is right for you and for help understanding your Credit Report and score, visit http://www.NationalCreditReport.com, learn what is in your Credit Report, and begin protecting your identity. The information provided to you may help you determine if you need to correct any inaccuracies on your Credit Reports, which will improve your Credit Score and help you obtain better financing terms when applying for a car loan, mortgage, refinancing, or credit terms.
Since 2004, NationalCreditReport.com has specialized in providing a variety of credit information to consumers to help protect them from credit fraud and identity theft as well as to understand their Credit Report and score. The Company provides credit monitoring, free Credit Reports, Credit Scores and other identity theft and credit fraud protection services.