How to Repair Credit After Bankruptcy
Forget erasing legitimate entries from credit reports. Many ads promise a fool-proof way how to repair credit after discharge. Most of these ads require payment of a fee, only to recommend disputing all adverse entries appearing on credit reports. They claim lenders will not respond, or neglect to respond timely, or take no interest in defending entries. These claims are false.
Also be aware, nationwide, a few law firms offer comprehensive dispute representation. These law firms are successful only after developing a reputation for filing lawsuits and proving consistent willingness to force disputes to a final verdict. With this reputation, law firms may settle dozens or hundreds of claim simultaneously. For instance, a law firm may contact the legal department of a major credit card and speak with an attorney. The offer is simple - remove these 100 entries immediately or 100 law suits will be file in small claims court. For individual debtors however, a threat of litigation is not considered seriously. See also:
The best way how to repair credit after bankruptcy
Require quality and substance. The best way to repair credit is to establish a consistent, unblemished record of making timely payments. Of course, few lenders offer debtors unsecured credit immediately after discharge. To obtain credit, you must be willing to offer substantial collateral until reestablishing a consistent repayment history over time.
All ethical lenders apply payments promptly, yet not all lenders are ethical. Small local lenders who provide installment loans are one of the best sources of new credit after discharge. Credit reporting agencies place significant weight on repayment of installment loans, and developing a personal relationship offers several distinct advantages over relying on credit cards. Local lenders provide the option for personal service. You may drop by and discuss options in person, any time. Also, if a payment may be late, you may request a few extra days to prevent a blemish on your perfect repayment record. Most local lenders are highly protective of their reputation within their local community, and their survival depends on developing local customer loyalty.
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