Credit repair after bankruptcy is possible, but it is essential to realise that there is no quick fix. Your success will depend on understanding credit repair and how you use the very few credit repair products.
How can I repair my credit after bankruptcy?
To repair your credit after bankruptcy, you will need to:
- Make sure that your credit report reflects you accurately (free credit reports)
- Apply for new credit accounts and manage them correctly
You mustn’t apply for loads of credit cards after bankruptcy; nearly all providers will reject you and leave a footprint on your credit report. This will make your credit rating worse.
You may wish to consider adding a note to your credit report stating the reasons for your bankruptcy, also make sure that your report states your discharge from bankruptcy.
How long does bankruptcy stay on your credit report?
Bankruptcy will remain on your credit report for six years.
What are the main reasons for credit repair after bankruptcy?
Credit repair after bankruptcy may help to limit the challenges a discharged bankrupt will face when trying to raise credit in the future. Reasons for credit repair now include:
- May want/need finance in the future
- It takes time to repair your credit after bankruptcy
- Reduces cost of finance to you in the long run
- Increases the number of credit products available to you. Credit products can be helpful; they have benefits such as insurance, cashback and insurance to purchase abroad.
- Increases the chance of you obtaining a regular current bank account
- Increases the chance of you obtaining a business bank account
- Increases the chance of you obtaining credit when in business
- Mobile phone contracts, Insurance
- I may need emergency insurance in the future—for example, for medical purposes.
Can I get the bankruptcy wiped from my credit report?
No, you cannot remove a bankruptcy from your credit report or pay anyone to do some magic for you. Bankruptcy will remain on your credit report for the six years it is supposed to be there.
Can anything damage my credit repair after bankruptcy?
Yes, if you have a bankruptcy restrictions undertaking or a bankruptcy restrictions order, it is doubtful that you can get credit while they are on your credit report.
Also, if you miss payments on any new forms of credit after bankruptcy, you will probably end up paying high charges, and your credit rating will be significantly damaged.