Did you know that bankruptcies are not allowed to remain on your credit for longer than ten years? Your credit report is compiled by three different credit reporting agencies. Each of the three agencies appoint you a credit score depending on your financial history. Due to the fact that the three agencies will report differently, lenders use the median of the three scores to decide your credit rating. Bankruptcies, liens, late payments, collections, etc. reflect negatively on your score.

Banks, credit card companies, as well as other lenders decide if they will lend you money, as well as the interest rate they are willing to lend it to you for, depending on your score. The higher or better your credit score, the better your chance of being granted a loan and the lower interest rate you will be required to pay.

When struggling with unfortunate financial situations, bankruptcy should not be the first option that is considered. Often there are other means of recovering from financial difficulties. If you happen to decide that bankruptcy is the solution for your particular situation, keep in mind that bankruptcy is not the end to enjoying good credit. It is possible to repair your credit successfully after filing for bankruptcy.

After your bankruptcy is completed the negative credit history included in your bankruptcy will be removed from your credit report conforming to fair credit reporting. The accounts included in your bankruptcy will be labeled as Included in Chapter 7 Bankruptcy or Included in Chapter 13 Wage Earner Plan, whichever type of bankruptcy you have filed. Be sure to document everything concerning your bankruptcy and keep accurate records.

The three major credit reporting agencies collect financial and personal information about consumers which is furnished to them by lenders as well as public records. The financial information that the credit bureaus collect, is reported to businesses such as lenders, landlords and credit card companies who have the legal right to request it. Bankruptcies are listed on your credit report for up to ten years, but the bankruptcy documents are public record, and will always remain available to anyone who looks for them.

If you do file a bankruptcy you will want to be certain that any creditors who you did not list in your bankruptcy continue to report your good payment record to each of the three credit agencies. Contact any of your lenders who may not be reporting your timely payments and request that they do so, in order for you to begin building a history of good credit following your bankruptcy. If you are able to have any lenders remove any charge-off accounts from your credit record, it is possible to boost your credit score. This option is usually beneficial for consumers who have made timely payments on their current debts. If you happen to be a consumer with a record for making your payments on time, your score could improve as much as 25 points.

After filing for a bankruptcy, you will need to verify that the statement of “discharged date” is noted in the “amount due” column in the public records section of your credit report. Any other negative public record financial information on your credit report will be removed after seven years. Even when negative marks fall of your report after seven years and your bankruptcy falls off of your report after ten years, you are left without a positive credit history and still considered a higher credit risk.