Credit Repair After Bankruptcy
Certainly, you will be bombarded with claims that "you can erase bad credit, guaranteed." Simply put, these insincere claims are false -- outright lies. In narrowly defined circumstances, entries may be removed from credit reports according to federal law, as set forth in the Federal Fair Credit Reporting Act. This law provides a dispute process, that allows debtors to contest inaccurate information. Routinely, when debtors file disputes, no action is taken because this law is simply to expensive for debtors to enforce and the federal government takes little or no interest in prosecuting predatory lenders who victimize consumers. Knowing this, most lenders automatically deny disputes and credit agencies take no action, without concern for accuracy or consumer protection laws. See also:
Best plan for credit repair after bankruptcy
Rather than attempt to remove prior entries, a much more successful approach relies on the creation of new entries to overshadow past history. You can create these entries at will, by merely making sure your creditors report timely payments. Also, be aware that secured credit cards to do significantly improve credit scores, because after all, these cards do not really extend credit but only permit charge privileges against prepayment. Reasonable lenders do not consider secured cards with any significant weight. These cards are designed primarily with the lender's interest in mind, with the hope they will deplete your deposit with late fees.
Creating new entries is fairly easy and should be virtually free. However, you must make timely payments, every month, over time. Few people actually have a perfect record making timely payments. In fact, many predatory credit card lenders have been sued in the past for holding payments beyond the due date, for the sole purpose of charging late fees. In return for paying a fraudulent late fee, trusting customers received a poor credit rating. Avoid predatory credit card lenders like the plague. Instead, consider first reestablishing credit with a local lender, using savings accounts for security deposits, and monthly installment loans paid by automatic deductions.
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