Remove The Negatives Before you attempt to obtain new credit, you'd do well to remove as much of the inaccurate, obsolete or unverifiable negative remarks as possible from your credit report. This task is critical, especially when you are in the process of building credit after bankruptcy. You may do it by yourself and spare yourself the investment of hiring a credit repair company. Just make sure that you have sufficient knowledge on how its done before you make mistakes that could cause more harm than good. If in doubt at least make the investment in a do-it-yourself credit repair course. Keep in mind that you want to start in a clean sate, so don't skip this step.
Add Some Positives Once you're improved your current status, you'll want to add some positive information to your credit report. It is not enough just to remove negative information from your credit report. Here are a few techniques that you could use to speed up the rebuilding process...
Become an Authorized User One technique you could use is called the Authorized User technique. Many credit card companies are more than willing to add extra cards for their customer's family members or employees. FICO has a way of determining whether or not you have a relationship with the primary card holder. Thanks to FICO08, if they don't detect a relationship, your score won't benefit. Assuming there is a legitimate relationship you will benefit from the primary card holder's credit limit and payment history. That means an instant credit score jump for you.
Look for someone with a card that has a limit over $5,000, a low balance, and a credit history at least 5 years old for best results. And remember to make sure the lender reports to the CRA's or it won't help you. Not all of them do.
Secured Credit Card This technique is a good way of adding positive payment history to your credit report. However, this technique requires cash which will be placed in an account in advance of any purchases. The first thing you need to do is to find a small bank. Small banks are preferred because they are flexible and will work with you. Again, make sure the bank reports to the three major credit bureaus about the activity on your account or the exercise is useless to your credit score. After you have found a bank that meets these requirements, you may now proceed to opening an account. You may deposit $1000 or less. Let some time pass, about a week, before using the card. Use the card at least once every 60 days to show activity.
Unsecured Credit Card There are a number of lenders who specialize in working with borrowers with less than perfect credit. Most tend to have high application fees, high interest rates, and unfavorable terms. There are a few, however, that will be more reasonable and will improve their terms over time as you prove yourself to be a valuable and dependable customer.
Shop around for the lowest fees and rates. Do your research to find out which ones have the highest approval rates. Remember that each time you apply for credit a new inquiry will appear on your credit. Too many inquiries will drag your score down, so make each one count. Remind yourself this is a temporary solution. As soon as your credit score has improved you can stop using the card. Tell them you'll close the account if they charge you an annual fee. Try and keep it open since the low balance and high limit will help your score. Never close any card with a balance. These are just a few strategies to help you build your credit after bankruptcy. It doesn't have to be the long drawn out nightmare your parents, lenders, and credit bureaus want you to believe.
How To Build Good CreditHaving helped thousands of Americans reverse the damage caused by the USA's faulty credit system, Brian Diez is regarded as the nation's leading credit repair expert. For more free information about building credit after bankruptcy without credit repair, visit his site http://build-credit.net.
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