Last night we held our second Credit Repair and Home Ownership After Bankruptcy Seminar. Kevin J. Kust, Regional Manager at Continental Credit, LLC was our main presenter. He gave an informative talk about what factors make up your FICO score and strategies for re-establishing credit after a bankruptcy.
Here is Kevin’s top 10 list of how to re-establish good credit after a bankruptcy:
- Re-establish credit ASAP starting with opening 1 Secured Credit Card. After another 2-3 months get another secured credit card. Installment loans are great to, but credit cards are most important. (even clients in an active chapter 13 bankruptcy can get approved and are able to open a secured credit cards as long as they are very low limits – have to be under $1000 limit.)
- After opening a secured card never exceed 30% of your available limit on each individual card. Better yet, use these cards for only a few dollars every month and simply make your on-time payment to show you are keeping the account active and you are being responsible by not putting excessive debt on the account & you’re paying it on time.
- Stay away from offers/solicitations in the mail – OPT OUT of these offers by calling 888.567.8688.
- Do not apply for department store or jewelry accounts to re-establish credit history. Secured credit cards are more versatile and ensure to grow your score with all 3 credit bureaus
- Open a secured installment loan with your local bank (however make sure you have at least 6-8 months of reestablished secured credit card history first)
- Your Checking/Savings accounts do not help re-build your credit profile.
- 90% of all Bankruptcies report INACCURATELY to the credit bureaus (i.e. accounts involved in the BK still show outstanding debts or do not appear to be involved in the BK, etc.) Make sure your BK matches your declarations page and is reporting correctly on your credit report!
- Make sure all accounts from your bankruptcy report as “included in bankruptcy” and have a $0 balance associated with the account
- Monitor your credit. Pull a report every 4-6 months to ensure your accounts are reporting correctly.
- Talk to an expert. Call Kevin J. Kust – Regional Manager at Continental Credit Restoration (ph. 303.868.0373) for a free analysis on your credit profile and potential options to remove some of the Bankruptcy from your credit report. Under the Fair Credit Reporting Act Bankruptcies CAN affect your scores for 7-10 years, but this DOESN’T mean that they HAVE TO. Bankruptcies can and have been removed from credit profiles given the right circumstances. Call Mr. Kust to find out how.