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After Bankruptcy Credit Score Thoughts…

Most often, prior to bankruptcy, many people don’t give too much thought to their credit score, particularly as they are falling into the pit of the real estate and credit card crunch.

Once the bankruptcy has been discharged, however, folks really need to give some thought and develop a plan on how to rebuild their credit and credit score.

With a clean slate, concentration and maneuvering to rebuild ones credit is paramount, especially after a bankruptcy. People often believe that after a bankruptcy they will never qualify or become eligible for credit again. This is not true,

however it does take a lot of work and one has to re-build creditability with the lending institutions and with the major credit bureaus.

The first thing you really want to do is learn everything about what a credit score entails. With a better understanding of credit scoring, and how the three major bureaus, Trans Union, Equifax, and Experian operate, you will be able to track your credit worthiness and how monetary behavior effects their scoring.

When a credit score is being compiled there are many things that are taken into consideration. Most naturally of course is your payment history which shows if you have been making your payments as agreed upon, if they have been late, and of course your bankruptcy may be reported? Additionally, the credit bureaus will take into account any outstanding debts, revolving lines of credit, mortgages, judgments, liens, etc., and finally your history (years of credit history).

There are other areas that are considered as the major credit bureaus guard their scoring methods well (it’s a secret), particularly in determining the risk that someone has in respect to their credit rating.

In the end, educating yourself about credit scoring will allow you to remove negative items from your report, locate the best method(s) of increasing your score, place positive items on your report, and rebuild your credit, even after a bankruptcy.

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