Maintaining Good Credit After Bankruptcy

How to maintain positive credit can seem like an impossible task to many people plagued by bad credit and debt history. For them the question of whether it is even possible seems tantamount to how to actually do it. Good credit however is nothing difficult, far from being impossible. When understood clearly, credit in itself is no mystery and therefore tackling it is no mystery either. The benefits of good credit are endless and like any self-sustained cycle, having good credit leads to better credit in the future, which is easier to pay off and thereby helps maintain a positive credit.

In order to understand how to maintain positive credit, it helps to know what causes bad credit in the first place. Factors such as tardiness contribute towards giving a poor impression of your finances and will contribute towards a negative credit. When bills are paid late, or not paid at all, it is likely to appear on your financial records. Furthermore, when debts are extended for long periods of time, or accrued to unreasonable extents, they also cause a negative impact. The answer is therefore simple. Paying all your bills on time, well before the due time if possible, and keeping your debt low is the key to maintaining positive credit.

Once you are sure that you are paying all your bills on time, work on paying off any existing debt you may have. It goes without saying that you should limit future debt until all history of debt has been cleared or is well on its way to being cleared. This will help you get better credit, and then any loans or savings you try to get in the future, you will have easier interest rates on them, which will make it more manageable for you. Keeping your debts and bills in check, you should move your focus onto your finance records in general.

Carefully manage and assess all your finances. Even though you cannot see your actual credit score, you can request to see your credit report, which will have a record of all your accounts and finances. Analyze these very carefully for any discrepancies that may exist and be sure to rectify them immediately if you do. If you have many accounts that you do not use, shut them down. There is no need to take on the liability of so many accounts if you are not going to be using them. They only contribute towards a poor credit record.

Finally, make sure you have a well maintained financial and account record. Keep track of all your bills and debt, and work towards paying them off, at a steady and timely rate. Good credit has all the benefits in the world to offer you and bad credit all the harm in the world. Once you know how to maintain positive credit your future finances and decisions should have no reason to suffer, whether you're looking to get a new apartment, a new job, a new home or a new car.

Source by Andrea DeLuca

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