The Need for Credit Repair

Credit repair is necessary if you have experienced bankruptcy (or just have debt problems) and may need to borrow in the future. Examples include buying a house, a car and even getting a credit card.

Unfortunately, the worst thing that you can do is expect time alone to heal your credit worthiness.

This site will help you to understand how the credit industry works and what you can do to help your bankruptcy credit repair.

Background to Credit Repair

Understanding how the credit industry works is essential if you are going to repair your credit after bankruptcy.

When you make an application for credit, the lender will calculate your credit score. If you have experienced bankruptcy, your score will be low and you need to increase it through a credit repair plan.

Your credit score is derived, by the lender, from information that:

• You provide them with
• They already hold about you (inc. behavioural scoring)
• They obtain from other organisations such as a credit reference agency

The lender will therefore know about your bankruptcy. The score that you get will tell them whether or not to lend you the money.

Therefore, it will help for you to read about credit scoring and credit reports.

Reasons for Credit Repair

Reasons for repairing your credit now include:

• May want/need finance in the future
• It takes time to repair
• Reduces cost of finance to you in the long run
• Increases the number of credit products available to you. Credit products can be useful, such as credit cards for insurance and purchasing abroad.
• Increases the number of providers willing to grant you credit
• Increases the chance of you obtaining a normal current bank account
• Increases the chance of you obtaining a business bank account
• Increases the chance of you obtaining credit when in business
• Mobile phone contracts, Insurance
• May need emergency credit in the future. For example, medical purposes.

Credit Repair after bankruptcy

Credit repair after bankruptcy is all about achieving a good credit score. To do this, you must:

• Make sure your credit report presents you as favourably as possible (repair your credit report)
• Aim to please credit providers by understanding and meeting their lending criteria - increase your credit score
• Devise a decent credit repair plan

After bankruptcy, credit repair will take time. However, it can be done and is essential if you want to borrow without being stung with high interest payments and charges.