When you’re drowning in mountains of debt and you don’t see a way out, bankruptcy may be the answer. Of course, when most people hear the word bankruptcy, they imagine that they’ll be marked for life and will never be able to get credit again. In reality, Getting Credit After Bankruptcy isn’t nearly as difficult as most believe. Of course, immediately after declaring bankruptcy it may be more difficult to obtain credit, but within only a few months most people are able to begin to rebuild their credit. There are a few tips to re-establish credit again and by following them carefully, within only a couple years, you’ll be able to get credit cards, car loans or a mortgage at a regular interest rate, as if you’d never filed for bankruptcy before.
Because Getting Credit After Bankruptcy is important, you’ll have to do what is necessary at first to rebuild your credit. Within a few months of your debts being discharged, you’ll start to receive credit card applications. Some, of course, will be for secured cards that will need to be backed with your own money, but even this as a start will allow you to begin to re-establish credit. Shortly after discharge, you may even receive an application for an unsecured card. The limit will be low and the interest rate high initially, but by using this card, or the secured card, you will begin building your new credit history. It’s usually recommended to charge small purchases on the card, pay a portion of the balance the first month and then pay it off in full the second month. This will raise your credit score better than paying in full each month.
It’s also of utmost importance to always pay on time for any of your non-discharged debts, such as a car or mortgage, that were not included in your bankruptcy. These timely payments will show your creditworthiness and help to rapidly raise your credit score.
To some, it’s surprising that Getting Credit After Bankruptcy is as simple as it is. By consistently paying your bills on time, using credit responsibly and always paying off credit cards in full, your credit will improve quickly. You’ll get a fresh start. Within a short time, you’ll be in a better position than if you were still struggling to pay your outstanding debts and never making any headway.
