Can you get credit after bankruptcy? Yes, learn how!Credit after bankruptcy is possible! All you need to do is follow these simple steps! Most people who consider or follow through with bankruptcy are convinced they will never have good credit again. 
Step One: Secured Credit Card
One of the quickest ways to establish credit is to get your credit back in shape ASAP. This is done quickly by getting new credit established. A secured credit card is the fastest way to do this. Use that for a couple months then try to obtain an unsecured credit card in a very small amount and begin to build your way up. Remember to only use what you can pay off each month. Don’t start to carry balances!!! You’re only doing this so you can repair your credit after bankruptcy quickly. Remember, your goal as a first time home buyer is to buy that first home. I had a client who followed this advice and was able to qualify for a home in 2 years. This is possible as long as you don’t have any collections (which you shouldn’t because of the bankruptcy). You may be able to get a middle of road type loan. The interest rate won’t be the lowest, but it won’t be the highest either. You should keep in mind that the U.S. Supreme Court wrote, "One of the primary purposes of the Bankruptcy Code is to give debtors a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt." See, even the Supreme Court wants to see you succeed and improve your credit after bankruptcy! Step Two: Make Sure Balances Show Zero on Credit Report Let's try to understand some bankruptcy basics. To begin with, bankruptcy is a legal process which, if granted, means you no longer have to pay the outstanding balances of certain accounts. It also means that creditors are no longer allowed to call, write, or in any other way harass you about your account. At the end of a successful bankruptcy, the presiding power will "discharge" certain outstanding debts. After the process is complete, you should have more disposable income at your fingertips with which to pay your remaining bills, provided you have income available to you. Once the discharge has been issued, federal law allows "discharged" debts to be reported by the credit reporting agencies with a balance of zero. If you find this has not happened with any of your discharged accounts, dispute the balance. This way you can raise your credit score after bankruptcy. It should be noted that if you do decide to file for bankruptcy, the bankruptcy will be reported on your credit report for ten years. Step Three: Manage Remain Credit Another way to improve your credit score after bankruptcy is to be sure and manage your remaining credit and/or charge cards wisely. Many people use the terms "credit card" and "charge card" interchangeably; however, there is a difference. Credit card companies allow you to carry a balance from month-to-month and will charge you interest for the privilege of doing so. Charge card companies require that the outstanding balance be paid in full by the statement due date. A sage old owl will manage his credit cards as though they were charge cards, thereby learning to manage his income and expenses and will save the interest charge monthly by the credit card companies. Some people aren't able to retain any of their credit/charge card accounts following bankruptcy. These people would like to obtain an unsecured credit card after bankruptcy for emergency expenditures or to, in time, improve their credit standing. Many find this is hard to do and can't understand why, now that they have more disposable income available to them. The reason is that with a secured loan, say a home mortgage, if you default on your house payments, the bank can repossess your home and recoup their losses. However, with an unsecured credit card, the credit card company is unable to repossess the items purchased with the card and have no way of making themselves whole again, except through your payment of the outstanding balance. In most cases, it is easier to obtain a home mortgage! Speaking of home mortgages...There are some loan packages which do not demand the passing of an eternity in order to qualify! In short, this is also an excellent way of reestablishing your credit after bankruptcy. So, I'll say again...credit after bankruptcy can be a reality for you!
|
