Bankruptcy is not a dead end to your credit life as mainstream thinking perceives it. Though it is easier said than done, you can still work on your FICO. However, in most cases, it is better to start correcting your score the moment you default a loan, so things do not worsen to bankruptcy.
However, in cases where the FICO assessment entails analyzing you credit habits over a long span of time and your efforts to clear unpaid debts are not meeting the mark, the struggle may go on for years. In the end, you may be declared bankrupt.
That is why experts recommend that you start fixing your FICO as soon as you spot any areas that may negatively influence your rating even if you have to acquire a Credit repair merchant account. It is difficult to keep stable accounts and fix your score at the same time when your record is full of unpaid balances. In fact, this kind of approach may sink you deeper into problems as you may miss a few installments.
All the same, if your case has exacerbated to bankruptcy, here are two basic tips to have your score repaired:
Secure new credit lines
Woe unto those that think abstinence from all forms of credit following bankruptcy is the best remedy. Most are under the impression that Card companies will appreciate them for avoiding credit thus winning them a better score. Well, nothing could be further from the truth; refraining from credit after being considered bankrupt is as terrible as having bad credit.
Acquiring new and low-limit credit lines following bankruptcy shows creditors your willingness to fight on despite hitting what many would see as a blind alley.
If you secure new credit lines, you can smoothly boost your FICO way before the creditor expels liquidation from your report usually in 7 to 10 years.
Settle bills in good time
Making late installments is the biggest slip-up you can make when you’re under the pangs of bankruptcy. Never should you miss the due date because there won’t be any other window. Creditors already view you as an unsafe borrower meaning any signs of your bad old habits will poorly affect your rating.
Acquiring low-limit credit extensions and making timely payments are two useful tips to improving from bankruptcy to relatively better FICO ratings.
Electronic Payment expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music and travel. eMerchantBroker is America’s No.1 credit repair merchant account Company serving both traditional and high-risk merchants.