After bankruptcy, a credit history statement can make your credit report look better. After your bankruptcy is complete, you need to get your financial life in order. Of course one of the first steps to doing this is to improve your credit report. You probably have heard all of the common ways to improve your credit report, but one thing you might not know about is your right to have a credit history statement. The Fair Credit Reporting Act allows you to add a written statement to your credit report that explains anything that may have caused your bankruptcy.
In her book, Bounce Back From Bankruptcy, Paula Langguth Ryan describes the credit history statement well. She says, “Bankruptcy is often caused by factors such as a job loss, illness, divorce, lack of money management skills – that may now be under control. Use your statement to summarize the nature of your past problem and, if possible, show creditors how you are better able to handle credit now. If the credit bureau limits your statement to fewer than 100 words, the bureau must help you prepare a summary. Call and ask the credit bureau for help writing your statement. Their representatives can help you put your past credit history in the best light.”
Having an elegant credit history statement really does nothing for your credit score, but it can do wonders with helping you get approved for credit. What it does is show potential creditors that you have made changes and are now trying to get your financial life in order. It can also show them that there were legitimate reasons why you had to file for bankruptcy.
Anyway, bankruptcy can be your fresh start that you desperately need. Do not let worries about your future credit keep you from filing bankruptcy. A bankruptcy attorney can show you how you will easily be better off sooner by going ahead with bankruptcy. Please contact a bankruptcy attorney to find out more.