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Bankruptcy does not rule out new credit or credit repair

For residents of Arkansas and other states, there is no doubt that having a bankruptcy on one's credit report will send the credit score downward. However, it does not mean that new credit will be impossible to obtain. It also does not mean that one's credit record cannot be substantially repaired. This can often be accomplished within approximately 24 to 36 months after the bankruptcy, depending on individual fact patterns.

The success that one has in obtaining future credit and in building a repaired and increased credit score will depend largely on the individual's commitment to achieving his or her set goals. Working toward a set goal of increased credit standing and focusing on that goal consistently is a powerful and proven technique for many persons. There are various practical steps to take to support the desired end result.

A person may start off with a new credit card and stay committed to absolute timeliness in making the payments. There are different kinds of credit cards that are available to people with bankruptcy on their record. In all of these offerings, there is a promise by the creditor to report payments to the credit bureau, which is the first powerful step toward increasing one's score.

The new cards will also increase the credit limit after several months of timely payments. The most impressive way to build this up is by paying substantially more than the minimum payment each month. Maintaining steady payments on a car loan is another powerful aid in repairing credit.

It is also important during this period to check in with the credit bureaus and periodically clean up the existing credit record. This entails challenging every entry that has a factual error and also making sure that old bills discharged by the bankruptcy are not showing up. The credit reporting agencies are often cooperative in removing mistakes that one points on his or her credit record. Whether you live in Arkansas or another state, you will find a general uniformity of procedure that is followed by the national credit reporting agencies.

Source: nerdwallet.com, "Applying for a Credit Card After Bankruptcy", Kevin Cash, March 17, 2016

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