Re-Establishing Your Credit After Bankruptcy
Contrary to popular belief you can get credit after bankruptcy.
It may not be an easy process to accomplish, but it can be done.
Before taking this step though you should look at your overall picture.
By this I mean what got you in the position in the first place to have to file bankruptcy.
Sit down and look at your finances to make sure you have the funds to be able to handle new credit appropriately.
You do not want to get yourself over extended.
Rebuilding your credit can take some time but as long as you pay those bills on time you will be setting yourself up for a positive outlook on your future credit worthiness.
Some who file start out with re-establishment by getting a secured credit card.
Not only do these cards report to the credit bureaus but they are easier to get because your limit is secured by a deposit that you make with the issuing bank.
Your credit limit will usually be comparable with this deposit.
Most of these companies limit a deposit to $5,000 meaning your limit would be up to that amount.
In the same respect if you deposit a lower amount your credit will reflect that.
The good thing about re-establishing your credit in this way is that usually once you have the card and keep it in good standing for a pre-agreed time, usually a year, your account can be reviewed for converting to a regular unsecured credit card.
This can be one of the quickest ways to establish credit back after discharge of previous debt.
Depending on the lenders, etc.
, your bankruptcy may or may not hinder you.
Those who do not understand will look at this like you are a huge credit risk because you had to file in any event.
Others who are more reasonable are more willing to help you on your way to rebuilding that credit because the main thing is once you file and are discharged you cannot file again for 7 years.
So as long as you show the ability to pay you may be okay risk wise.
Others have, believe it or not, actually been able to get a vehicle shortly after discharge.
Of course this varies considerably state-to-state or even car dealer to car dealer.
Once again, I cannot stress enough the importance your finances play a role in this part.
If you can afford it great, if you cannot wait until you can.
In the same token, about one and a half to two years after discharge you can even apply and qualify for a home loan as if you had never even filed.
Depending on the economy and the circumstances you may be required to pay some points towards a good interest rate but most of the time you will be able to qualify after some time.
Stop thinking that bankruptcy will ruin your credit beyond repair, as this is just not true.
Actually most believe that bankruptcy is no worse and actually probably better than having all that bad credit on your report to begin with.
The bankruptcy can erase your debt and give you a fresh start.
This will only happen though if you are prepared and know ahead of time what you can and cannot comfortably afford to pay off.
Set up a budget to see where you stand.
Remember that filing for bankruptcy is not a shameful thing.
You can rebuild your credit after bankruptcy.
If this is the course of action that you need to take then do it so you can be well prepared for a brighter future.
It may not be an easy process to accomplish, but it can be done.
Before taking this step though you should look at your overall picture.
By this I mean what got you in the position in the first place to have to file bankruptcy.
Sit down and look at your finances to make sure you have the funds to be able to handle new credit appropriately.
You do not want to get yourself over extended.
Rebuilding your credit can take some time but as long as you pay those bills on time you will be setting yourself up for a positive outlook on your future credit worthiness.
Some who file start out with re-establishment by getting a secured credit card.
Not only do these cards report to the credit bureaus but they are easier to get because your limit is secured by a deposit that you make with the issuing bank.
Your credit limit will usually be comparable with this deposit.
Most of these companies limit a deposit to $5,000 meaning your limit would be up to that amount.
In the same respect if you deposit a lower amount your credit will reflect that.
The good thing about re-establishing your credit in this way is that usually once you have the card and keep it in good standing for a pre-agreed time, usually a year, your account can be reviewed for converting to a regular unsecured credit card.
This can be one of the quickest ways to establish credit back after discharge of previous debt.
Depending on the lenders, etc.
, your bankruptcy may or may not hinder you.
Those who do not understand will look at this like you are a huge credit risk because you had to file in any event.
Others who are more reasonable are more willing to help you on your way to rebuilding that credit because the main thing is once you file and are discharged you cannot file again for 7 years.
So as long as you show the ability to pay you may be okay risk wise.
Others have, believe it or not, actually been able to get a vehicle shortly after discharge.
Of course this varies considerably state-to-state or even car dealer to car dealer.
Once again, I cannot stress enough the importance your finances play a role in this part.
If you can afford it great, if you cannot wait until you can.
In the same token, about one and a half to two years after discharge you can even apply and qualify for a home loan as if you had never even filed.
Depending on the economy and the circumstances you may be required to pay some points towards a good interest rate but most of the time you will be able to qualify after some time.
Stop thinking that bankruptcy will ruin your credit beyond repair, as this is just not true.
Actually most believe that bankruptcy is no worse and actually probably better than having all that bad credit on your report to begin with.
The bankruptcy can erase your debt and give you a fresh start.
This will only happen though if you are prepared and know ahead of time what you can and cannot comfortably afford to pay off.
Set up a budget to see where you stand.
Remember that filing for bankruptcy is not a shameful thing.
You can rebuild your credit after bankruptcy.
If this is the course of action that you need to take then do it so you can be well prepared for a brighter future.
