Credit Repair after Bankruptcy

In the United States there are three major credit-reporting bureaus, which are constantly updating and verifying your credit report. The accuracy and good standing of your credit should be extremely important to you. Your ability to borrow money from a bank and obtain credit cards all depends on your having a good credit rating. You need to be aware of the fact that false, inaccurate or incomplete information placed in your credit report by a creditor or a credit bureau can stop you from obtaining favorable mortgages or automobile financing. That forged information will definitely impact your ability to obtain favorable insurance rates or spoil the prospect of simply renting a home or apartment.

It is your legal right to repair your credit. The Fair Credit Reporting Act (FCRA) requires that every credit bureau always keep an accurate and verifiable account of you credit history. The FCRA was created to protect your rights as a consumer. The first step involved is to get a copy of your credit report. You need to dispute any incorrect claims put on this document. Write-offs and late payments could stay on your credit report for seven years. A bankruptcy can stay on for ten and is a matter of public record. You want to keep your credit solid by paying expenses on time and applying for new credit cards you can practice with.

If you have a dispute regarding the information on you credit report then it is your legal right to ask for an investigation. It is the responsibility of the Credit bureaus to answer your request within a reasonable amount of time and to respond to each and every request. It is the legal responsibility of the credit bureau you have contacted to contact each business and ask for verification as to the accuracy on your credit report. They will then update, correct or delete the items in question. If a business that was contacted does not respond then the transaction in question will be deleted from your report.

Mortgage and Bankruptcy

Bankruptcy is defined as “a legal proceeding that protects a debtor from legal action by some creditors”. Mortgage is defined as “a legal agreement that uses property as collateral to secure property as debt.” Both mortgage and bankruptcy can deeply affect your financial future.

Bankruptcy can seriously affect your ability to attain a mortgage or to refinance an existing one. If you already have a mortgage on your home, the bank, or creditor who holds the mortgage, in some cases, may sell your home if mortgage payments are not made. This could prove to be a tragedy for you and your family.

Bankruptcy can stay on your credit report for seven to ten years, depending on how you choose to file. This does not mean that you cannot get a mortgage or refinance. It just means that it will be more difficult and you won’t be able to get the best rates. Some lenders will consider lending you money after two years of staying current on your bills. Your ability to refinance your home at a lower rate will depend on your credit history since the bankruptcy. Staying current on your payments will facilitate you in re-establishing a good credit report.