Concerned Consumers Ask How to Improve a Credit Score after Bankruptcy
While it may not be possible to erase bad credit reports, there are steps you can take to improve the overall health of your credit report and improve your credit history.
The February issue of Realtor magazine divulges seven tips to shore up your credit well being.
The article by Patrick Ritchie recommends identifying any mistakes on your credit report and attempting to have those rectified.
When reviewing your credit report, Ritchie advises looking at credit history such as late payments, collections, payment records, unusual accounts, original dates, available credit, types of accounts, and reason codes.
He suggests retaining a copy of your credit report for seven years to track the date of new additions or removals. Collections and chargeoffs should no longer be a part of your credit history or report after that length of time.
Unfortunately for some, review and maintenance of the credit report is not enough. Money and finance experts at media company AOL are fielding more and more bankruptcy questions from worried consumers asking how to improve a credit score after bankruptcy.
According to the media company’s personal finance site WalletPop, Chapter 7 bankruptcy filing remains on your report and is reflected in your credit score for 10 years after filing bankruptcy. One step to rebuilding and improving credit history includes eventually obtaining a new secured credit card and making payments in full, they say.
What is a Good Credit History Score for Lower Auto Rates?
Cautiously opening credit cards in college could spell benefits in the long-run.
One perk from building good credit history in college could be lower rates on auto insurance in the future.
“Despite all the criticism about college students and credit, now [during college] is a good time to get your first card and start building your credit history, as long as you can be sure to pay off the card each month,” says Kimberly Palmer, senior editor for U.S. News and World Reports.
According to national insurers, financially responsible applicants with a good credit history are eligible for savings on auto insurance plans.
A credit-based insurance score – which examines the likelihood of involvement in a future insurance claim – is used to determine auto plan rates. Factors like credit payment history and length of credit history can affect these calculations.
GMAC Insurance suggests paying bills on time and minimizing balances carried on credit cards as two ways to improve credit history and an insurance score.
According to research firm Conning & Co, 92 percent of insurance companies consider credit history information when evaluating new policies.
About the Author: This article is brought to you by Allison Tomek for NationalCreditReport.com. NationalCreditReport.com offers credit reports and monthly and annual credit monitoring services to help prevent identity theft. Our service accurately identifies your credit score and credit history.