Many people worry about their credit score and look for easy ways to improve their credit standing. This is especially true for someone who has filed bankruptcy, as their credit probably took a hit when their payments became delinquent prior to filing. While there may be some legitimate ways to give your score a boost, many are not always a good choice or will give you the results you are hoping for.
The Quick Fix
Having just dealt with overwhelming debt and completing the bankruptcy process, you may not feel up to yet another financial challenge. However, your credit score is a big deal and the keystone of your financial life. The problem is that non-reputable companies know that and have set up to take advantage of people who are exhausted from their debt battles.
A popular credit repair scheme, called file segregation, promises to hide negative information on your credit report for a fee. These companies send out letters to those in financial trouble or have recently exited bankruptcy stating that they will be ineligible to qualify for credit for at least 10 years. By sending such an ominous message, these companies are scamming people into obtaining tax identification numbers fraudulently, which are then used to apply for credit. This is a crime! Anyone caught using a fraudulent tax identification number faces potential trouble with the IRS.
It Is Not A Race
It is best to remember that the credit game is a game of purpose and patience. The best way to repair your credit after a bankruptcy or debt battle is to take it slow and steady. Be a responsible borrower and make timely payments. Do not take out more than you can afford to repay and keep your debt balance less than 30 percent of your total credit line. Getting a good credit score is possible, but it won’t happen overnight.