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I have a recent bankruptcy (discharged only a month ago) and I have a credit score of 578. Does anyone have any tested suggestions on how I can improve it. Ive read about a lot of things you can do, but Im not sure where to start. All my accounts were charged off and closed except my student loans. I don't know if I should apply for a new credit card and use that to improve my score or if I should wait until my score improves and then apply. Im so lost.
If it is a Chapter 7 or a Chapter 13 bankruptcy, the listing may stay in your credit report for a ten years and will lower your credit score. Bankruptcies fall under public record and so it cannot be removed from your credit report. At this point of time you should not apply for a new credit card because if you apply, there will be a hard inquiry in your credit report which will lower your credit score further. Moreover, with such a score, your probability of getting a credit card is very low.
Yes, Mary is right. You should not go for a new credit card right now, instead, you should concentrate on improving your credit score. Since some of your accounts have already been charged off, you should contact the creditors and get into a repayment agreement with them in writing to pay off the charged off debts. This is because if the SOL has not expired, the creditors can sue you and bring judgment against you to recover the charged off debt. But before you pay off the "charge off" debts, you should ask your creditor to change the status in your report as "paid as agreed" instead of "paid charge off". This will help you to improve your score. However, if you want to improve your credit score by using a credit card, you can go for secured credit cards.
Suggestion
I have a suggestion. Look for a secured credit card. They usually have a nnual fee, and start at $500+. Sterling Savings bank of Spokane offers one that reports to all 3 credit bureaus.
Victoria Adams
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