Pay All of Your Bills

Pay All of Your Bills on Time Okay, you've got a budget and maybe even a secured credit card. You are also tracking your spending and making sure you don't carry a balance on your credit card. Some people think that your credit will be fine if you take care of the "big items" like your credit card bill and your mortgage. But it's vital that you pay every single bill that you owe on time. Even a long-forgotten cell phone bill could end up on your credit report if you neglect it long enough. Your money management program most likely has a way to set up text or email reminders when due dates are approaching. Or you can even set up automatic payments with your bank. Choose a method that you feel comfortable with. It doesn't matter what your brother, aunt, or neighbor uses. Establish a reminder system that works with the way you like to handle things, whether it's a text or an appointment in your Google calendar. Monitor Your Credit Reports You should check your credit reports every year and make sure they are error-free. You're working hard to improve your score and rebuild your history. It would be a shame if an error got in the way of your success. Every 12 months, you're entitled to a free credit report from each of the major bureaus: Equifax, Experian, and TransUnion. You can get your reports at AnnualCreditReport.com. Note the filing date of your bankruptcy so you can make sure the bankruptcy is removed from your credit reports in a timely manner. A Chapter 7 bankruptcy stays on your report for 10 years because most of your financial obligations are eliminated. A Chapter 13 bankruptcy, as you've done, falls off your report after seven years from the date filed. A Chapter 13 doesn't release you from all of your obligations, so that's one reason you can recover more quickly than you would with a Chapter 7.