Whatever your reason for going bankrupt, there will surely be a big negative impact of bankruptcy on credit report… and the bankruptcy remains on your credit report for around 10 years. However, there are ways and means to improve your credit report after bankruptcy… and over the years you can build a good credit. But all your efforts might go waste if you do not monitor your credit report and ensure that it is correct at all times. Here are the typical things that you should be careful about with regards to your credit report after bankruptcy:
Are the accounts still shown as open on your credit report?
While the mention of bankruptcy items remains on your credit report for 10 years, the accounts that you have closed on account of bankruptcy should no more appear as open on your credit report once the bankruptcy process has been completed. So, this is the first thing that you must check on your credit report.
Is your secured credit card being reported to the three credit bureaus?
Most people, who are looking to repair credit after bankruptcy and have been advised correctly, would be looking to get a secured credit card as a means of building a good credit history. However, before applying for a secured credit card, you must ensure that the card issuer actually reports the secured credit cards to the three credit bureaus on a regular basis… otherwise all your efforts to repair your credit would not be reflected in your credit report.
Have any unknown accounts popped up in your credit report?
This is again something that you have to lookout for on a continuous basis. You are entitled to a free copy of your credit report once a year and you must get it from one of the credit bureaus and check it to ensure that it doesn’t contain any accounts that don’t belong to you. If there are any such items then you should immediately report them and get them corrected.
Are the credit limits correctly mentioned?
This is another important thing that you should monitor your credit report for. Ensure that the credit limits mentioned in your credit report are correct. The credit limit (or rather, the percentage of credit limit consumed by you) has a bearing on your credit score. Low percentage of credit consumption will have a positive impact on your credit score.
Late payments mentioned when you have had none
After bankruptcy and if you are seriously looking to repair credit, you would be making payments on time on all your accounts. If you have been sticking to this rule then there should be no late payments mentioned in your credit report (since you have made no late payments). However, in case you find the incorrect mention of late payments on your credit report then you should immediately report them and get your credit report corrected. Similarly, if there are other items (e.g. collections) wrongly mentioned in your credit report then you should ensure that these are removed from your credit report.
Bankruptcy still reflected even after 10 years
Finally, the mention of negative items (related to your bankruptcy) on your credit report should go 10 years after your bankruptcy and by this time you would have built a great credit score if you have been disciplined with your finances and if no unfortunate event (that has impact on your finances) has happened during this period. But it is something that you should check; and ensure that the bankruptcy items have actually been removed from your credit report. This should give a boost to your credit score. Also ensure that any other negative entries (besides those related to bankruptcy) are also removed from your credit report after 7 years.
So, be careful about the above mentioned points and you should be on your way to a healthy financial future.