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NJ Bankruptcy Lawyer Discusses How To Improve Your Credit After Bankruptcy

Many clients advise me that they only want to use cash and will never use credit cards, again, after bankruptcy. However, in the U.S. economy it will likely be necessary to use credit for various needs. In other words, you may need credit to buy an automobile or other essential items. Therefore, the better your credit worthiness the lower your interest rates and the cost of credit.

Also, please note that a high credit score does not necessarily mean that you are a good credit risk. For example, a person with a high credit score, with tons of debt and a very low paying job, may not be a good credit risk.

After a bankruptcy case is completed and the debtor has been granted a discharge, the debtor must obtain their credit report from all three credit bureaus- Experian, Equifax and TransUnion. The credit report must reflect that all dischargeable debt is marked as discharged. The debtor may need to wait some time after their discharge for their credit report to accurately reflect the bankruptcy discharge. If their credit report is not properly reflecting this information, the bureaus must amend the credit report accordingly. In the event the credit report is not properly reflecting this information after a reasonable time period, one should send a letter requesting the change to all three bureaus with the discharge order enclosed. Also, a copy of the letter should be sent to the creditor.

Also, after the discharge, the debtor should obtain a secured credit card from a bank. My explanation of a secured credit card is in a separate blog. After making timely payments in connection with your secured credit card, the individual should apply for additional credit cards from other banks. All monthly credit card payments should be current and up to date.

You may contact Robert Manchel, NJ bankruptcy attorney, for a free consultation, at (866) 503-5655. We can discuss your individual circumstances and whether bankruptcy protection is an option for you.

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