Many people who are new to the world of finance and credit, are afraid of getting bankrupt. To enhance your statistical information, almost 500,000 people get bankrupt yearly in the USA. Even though being bankrupt might be fearsome but it’s good to know that you are not alone.
Moreover, you have to deal with the repair process of your credit after getting rid of bankruptcy. People keep asking that how long does it take to remove bankruptcy from a credit report. The good thing is that these questions are answered in this article.
How long does a bankruptcy stay on your credit report? Now, the period of your bankruptcy depends on its nature. For instance, a chapter 7 bankruptcy stays on your credit report for ten years while chapter 13 waits for seven years period.
Pretty opposite to what you think, a person can get loans and credits even after the bankruptcy occurrence. You can skip the long waiting 7-10 years under the bankruptcy tag. While the bankruptcy period might be shortened to a smaller one, the wait is usually a tough one, and even if you get a loan after this period, then the lenders will charge you high rates of interest.
We will advise you to work on negating bankruptcy and build your credit image building. Paying high-interest charges would not help your cause in any possible way.
Bankruptcy’s impact on your credit score:
It affects your credit in the most devastating ways. The higher your score is, the more significant setback you experience. A person with a credit score of near to 680 will see a decrease in his credit score by an amount of 130-150. If your score is in 780s, then the drop will amount an aggregate of 220-240 points.
For understanding what a low credit score does to your credit prospects, you need to see what it does. The credit giving companies usually reject the applications of people of low credit score, and if the credit is given then the interest will be higher, and loan amount will be limited.
Rebuilding credit after bankruptcy:
Rebuilding credit score after bankruptcy is a crucial thing. Try to remove the bankruptcy first. Once that it is removed, better your credit score by paying your bills on time.
Paying bills on time significantly affects your credit score, and skipping a single payment of 30 days can lessen the count. Consider how bad it will be if you miss a payment regularly.
Another thing to consider is that you must not add debt to yourself for no reason. The more credit you accumulate, the worse your credit score will be.
Is removing the bankruptcy possible?
Many credit bureaus are working to help you negotiate this unfavorable condition. But the thing is that these bureaus make you feel that the bankruptcy is an impossible thing to deal with. And many leading finance websites copy misleading information from wrong sources.
For removal of bankruptcy from your report, you need to file disputes with three bureaus at a time. Make sure that they support each other, and the information is well furnished. Bureaus will reject anything suspicious because they work to find if anyone is abusing the law or not.