California is the place where many people have realized their dreams. It’s also the venue for many bankruptcies over the years. If you fall into the latter category, don’t panic. Your credit and reputation are not permanently damaged. There are many methods you can adopt to repair your credit and get your life back on a successful track.
Check your credit score and reports
Bankruptcy will certainly cause damage to your credit score. But this doesn’t mean you can never get a loan for a car, home, or new business. After your bankruptcy discharge, the next step should be to check your score. Several free sources on the web can help you get all of the facts.
Remember that credit reports will document a Chapter 7 bankruptcy for ten years. If you file for Chapter 13, it will show up for seven years. Any late payments or debts that end up in collection will also show up for seven years. In this case, you have little choice but to wait until this information ages off of your credit history.
However, you always have the right to dispute any inaccurate information on your credit report. Doing so will be an effective way to increase the repair of your credit score. Checking your score from month to month will be the best way to spot and dispute any potential errors.
Apply for secured sources of credit
Rebuilding your credit is a goal that may take quite a lot of time, effort, and patience to achieve. One way to speed up the process is to apply for a secured loan or credit card. You can also ask someone to co-sign for a credit card or loan application.
A secured credit card is backed by a deposit you pay in advance. It may come with high interest rates and an annual fee. Using it will help you prove that you are, once again, a good credit risk.