If you have filed for bankruptcy, you may find rebuilding credit status a very difficult activity. It’s essential you rebuild credit after coming out of bankruptcy, since account details are flagged for seven years after the inception of bankruptcy. You may experience certain financial hardships, especially when it comes to acquiring loans and credit facilities from creditors. You may feel that getting fresh or new credit after Chapter 7 or Chapter 13 bankruptcy is next to impossible. Primarily this happens because the bankruptcy leaves a negative impact on your credit score and ratings for as long as seven years. Also, your credit score takes a beating during and just after bankruptcy, so creditors don’t feel like sponsoring an individual who has bad credit history and poor ratings.
You can, however, rebuild your credit status after being bankrupt. Here are some ways to do just that. Obtain a secured credit card. It’s possible to reestablish the credit ratings by applying for a secured credit card. This can be done by creating or setting up a savings account within a reputable bank that offers secured credit card facilities, and later applying for a credit card. A few banks offer unsecured credit cards. In such cases, no deposit is required to avail the facilities. It can be a very good option in reestablishing new credit ratings. In order to qualify, you need to be employed, and provide identity as well as residence proof in the form of telephone or utility bills. You also need to have a certain fixed monthly income. Your credit history should not include any recent derogatory entries or comments within the past six months.
When it comes to automobiles, certain dealers specialize in selling cars to individuals who have faced bankruptcy, or possess bad credit ratings. Check out the telephone directory, or look for advertisements of car retailers and dealers who specialize in such issues.Be prepared to pay big deposits, and higher interest rates. The automobile purchased functions as collateral for the loan. Since the credit facility is associated with high interest rates, many dealers might be interested in helping out. Make sure all your payments are made on time. Timely payments can help build good credit reports!
Tags: auto loans, bankruptcy, Chapter 13, Chapter 7, credit repair, credit report
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