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Repair Credit in Birmingham

Credit repair in Birmingham is an important service because more than 500,000 Americans declare bankruptcy each year? While unfortunate, it’s helpful to know that you are not alone when it comes to dealing with a bankruptcy. Even after your bankruptcy is discharged, there is the aftermath to contend with as well; namely, repairing your credit.

Having bad credit is an unfortunate problem that many families face, especially in this current economic climate. Having a bad credit score can have a very negative impact on your financial health and can result in higher interest rates, loan rejections, and more interest. That’s why thousands of people have turned to credit repair companies to repair their credit and improve their credit scores.

Get good information to improve your credit in Birmingham

Repair Credit How can I rebuild my credit after bankruptcy?

The most important thing you can do to rebuild your credit after a bankruptcy is getting it removed from your credit report. Equally important is learning and changing your personal finance habits so that it doesn’t happen again. This might involve reviewing your income and expenses or bulking up your emergency fund to prevent future financial hardships. The most important ongoing habit you can begin is to pay all of your bills on time because your payment history accounts for the largest portion of your credit score. Even a single 30-day late payment can cause a significant dip, so imagine how bad it could be if you regularly miss a payment.

Your other best bet for rebuilding your credit after bankruptcy is to avoid accruing new debt. Depending on what type of bankruptcy you filed, you probably had much of your debt discharged. Even though the bankruptcy itself is a major negative item on your credit report, consider the rest a blank slate. Avoid racking up additional debt because that also has a significant impact on your credit score. Yes, a bankruptcy isn’t a fun process to go through. But look on the bright side and consider it an opportunity to start fresh with your finances.

Chapter 13 bankruptcy

in Birmingham

Bankruptcy Removal Companies that claim they can restore your credit and quickly erase debt are a dime a dozen. But beware! Many of these services will do little or nothing to improve your credit.

If you need to repair your credit or consolidate debt, you can arrange payment plans and improve your credit score yourself for little or no cost. Make sure you don’t get duped.

If you can’t pay your bills:

Contact a nonprofit credit counseling service in your area.
Contact your creditors immediately to arrange a payment plan.
Questions to ask credit repair companies:

How much do your services cost?
What do you offer that I can’t do myself?
What proof will you provide that you are negotiating with my creditors?
What are your cancellation and refund policies?
Are you in compliance with the Ohio Debt Adjusters Act?
Tips to improve your credit score:

Always pay on time.
Don’t take on new debt to pay old debt.
Keep balances at 30 percent or less of available credit.
Get your free credit report at www.annualcreditreport.com.
Correct mistakes on your credit report by notifying the appropriate credit reporting company in writing.
Don’t close old accounts; a longer credit history improves your score.
Demonstrate your ability to handle various terms and conditions of credit by having a good mix, including revolving loans (such as credit cards), installment loans (such as auto loans), and mortgage loans (such as home loans).
Apply for and open new lines of credit only when you need them.

 

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