Several good books have been written about rebuilding credit after bankruptcy. For various reasons, much of that once good advice no longer applies. There is a New Credit World which continues evolving as I write. This column is written for those with a recent bankruptcy or foreclosure.

In building new credit after bankruptcy and/or foreclosure, there are two things that remain constant. First, you need to make sure all three of your credit reports reflect only accurate information. Over 90% of all credit reports contain errors, many of them serious. Many Creditors appear to ignore much of the Fair Credit Reporting Act. The next step is for you to establish new credit in a tactical manner for your best advantage.

Let’s talk about getting all three reports corrected. First, the dispute process is often neither quick nor easy. Understand the credit reporting agencies are not your allies. Use great caution with what you say/write to a credit reporting agency. For specifics on how to dispute information on your credit reports, I suggest you read my blog titled Credit Repair Basics.

A word on entering comments to clarify some situation or another; such comments do not do anything positive for your credit scores. It is of no benefit to you to make comments, and everything you say can and will be used against you. This is one of those times to consider the Miranda Warning and the idiom less is more.

Are there instant results to getting your reports corrected? No. How long does it take? This depends on you and your personal credit situation. However, generally speaking, with your pro-active approach and professional guidance, positive results should be seen in about 8-10 months.

To begin, you need to get a copy of your credit reports. There are three credit reporting agencies: TransUnion, Equifax and Experian. You can get a free copy of your credit reports once a year. The TV advertisements offering free credit reports are nothing other than sales gimmicks to sell virtually needless and useless services.

At the same time you are correcting your credit reports, you need to begin reestablishing your credit. You want to do this wisely. For some other pointers, refer to my blog FICO FACTS – Score Building. Be informed.  Plan ahead and act not in desperation. Desperation leads to failure. The next column will discuss strategies for establishing new credit.

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Image Credit: myFICO

Financially Speaking – James Spray RMLO, CNE, FICO Pro | CO LMO 100008715 / NMLS 257365 |July 12, 2010 | July 30, 2018

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only. You may use this information in whole and not in part providing you give full attribution to James Spray.