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How Virginians can rebuild credit after a bankruptcy

More than 700,000 Americans filed for bankruptcy in 2017. While the debt-forgiveness process does make it harder to get credit in the short-term, there are ways to get a higher credit score long before the filing drops from a credit report. According to a survey from LendingTree, those who filed for a mortgage three years after a bankruptcy only paid 19 basis points more than people with no bankruptcy.

Those who have filed for bankruptcy can help themselves by applying for a secured credit card. This type of loan is secured with an initial deposit that will play a role in determining a cardholder's credit limit. In some cases, the credit line will be more than the deposit, but this isn't always true for those who have just come out of bankruptcy. By making small payments in a timely manner, it shows that a person is responsible using credit.

Part of improving a credit score after bankruptcy involves signing up for a credit monitoring. Keeping track of a credit report is great way to stay on top of potential identity theft. It can also help a person gain access to offers from creditors once his or her credit score gets closer to 700. However, former debtors are urged to remember why they filed for bankruptcy and avoid committing the same mistakes again.

Those who have credit card debt or other outstanding balances may find relief by filing for bankruptcy. In addition to potentially eliminating debt, bankruptcy can put an end to creditor collection efforts such as phone calls or letters. Individuals who file for Chapter 13 protection may be able to keep a home, car or other property while the case is open. A bankruptcy attorney could help with the filing process.

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