Getting back on your feet after a bankruptcy discharge means rebuilding your credit. Now that you’ve experienced bankruptcy, you probably have an increased awareness of how important it is to stay on top of your bills and make sure that the creditors never have anything to report in the future.
However, not all of your bills and payments are reported to credit bureaus—creditors are not required by law to report anything, including delinquent payments. It’s important to know which places will report your activity, so you can focus on rebuilding your credit appropriately.
Generally, negative reports will stay on your credit bureau debt report in The Woodlands, TX for seven years. Here’s some more information:
- Utilities: Generally, utility companies don’t report positive payment history to credit bureaus—they wait until your account is severely delinquent. However, getting utilities in your name, without having to put down a hefty deposit, depends on having a good credit history. Be sure to pay your utility bills in full and on time as much as humanly possible.
- Credit cards: Your credit card companies may report on-time payments to credit bureaus, which will ensure that your credit score goes up—and if you’re delinquent, you can expect to see those on your credit report in The Woodlands, TX as well.
- Rent: Many people are surprised to find out that rent payments are usually not reported to credit bureaus unless you’re severely delinquent. Paying your rent on time is important—an eviction will end up on your credit report and negatively affect your score—but it might not be the key to rebuilding credit. Unpaid rent may also be sent to a third-party company, which likely will report your delinquency to the credit bureaus.
- Account openings and closings: Anytime you open or close an account, or pay off a debt in full, it will be reported to the credit bureaus.
- Auto loans: If your loan is through a bank, it’s almost certain that they will report default or delinquent payments—but if you bought your car through a smaller company with on-site loans, they may choose not to report late payments.
- Mortgages: Finally, delinquent mortgage payments and foreclosures will be reported to your credit bureau, so make sure that if you kept your house, you continue to pay the mortgage on time.
What to do if inaccurate information is reported
Sometimes inaccurate information is reported to the credit bureaus, causing your credit score to drop. If you find a discrepancy, file a claim as soon as possible. The creditors and bureaus will have 30 days to review the claim and make appropriate changes—if you’re in the right, they’ll remove the negative report, and your credit score will go back up.
Be sure to pay close attention to your credit after you’ve gone through a bankruptcy proceeding—the more you build your score, the better off you’ll be.
If you want to learn more about how your bills affect your credit score in The Woodlands, TX, call James R. Jones, Attorney at Law for a consultation today.