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While a Chapter 7 filing stays on your credit report for 10 years, it's important to remember that after filing for bankruptcy, you are actually less of a credit risk, since you have very little outstanding debt. Here are four tips to repairing a damaged credit rating: - Apply for a secured credit card. These cards are backed by money that you deposit in a special account, so you don't run the risk of falling behind on payments. They'll make a good impression on your credit report.
- Ask a trusted friend to co-sign on a small loan, preferably from the bank that holds your checking
account. Repayments on the loan will help your credit rating the same way they would if you took the loan out yourself.
- Open a savings account, if you don't already have one. Try to deposit 5% of your paycheck directly into the account.
- If you have the means, you should consider getting a car loan or a mortgage. To avoid a higher interest rate, you'll have to provide proof of employment.
For more free financial advice, take advantage of the guides at Yahoo! Finance.
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