Getting Loans and Credit After a Bankruptcy: It Can Be Done
There is pretty much no getting around the fact how a bankruptcy is going to affect your ability to get approved for the majority of different kinds of credit. It really doesn’t matter if you file for chapter 7, or chapter 13, both the rules for a chapter 13 filing and a chapter 7 filing will not specifically affect what matters when it comes to your chances of getting credit in the future, and rather it has more to do with the actual bankruptcy mark that is going to be on your credit report. This bankruptcy mark will be on your report from anywhere between seven and ten years, and in combination with your bad credit score it is going to show a strong signal to lenders that you have had trouble paying back debt in the past.
If you want to improve your chances at getting loans and credit in the future then you need to focus on improving your credit because you cannot change the fact that the bankruptcy is going to be shown in your credit report for at least seven years. It doesn’t matter if you are trying to get a mortgage after bankruptcy, or even a personal loan after bankruptcy, the actual mark will be on your credit report for a multitude of years and for this reason you must take control of the things that are within your power to affect. This essentially should translate into you wanting to learn about the ways you can improve your credit over time, and by doing so you’ll hopefully better your score and increase your chances of getting approved.
Before you start to do anything you must form a plan that will hopefully establish how you are going to begin to make improvements to your credit over time. Getting credit cards after bankruptcy is actually one of the first things that you should think about doing to improve your credit because getting a credit card can be an easy way to build your credit back up over time. Getting a secured credit card is easy to get approved for even if you’re coming off a bankruptcy, and getting this kind of credit line should give you the ability to make on-time payments each month without much difficulty.
This will have a positive affect on your credit score, and unlike getting a refinancing loan after bankruptcy, a secured credit card doesn’t require that you jump through too many hoops before getting approved. You can also do other things to improve your credit besides paying your secured card each month, and some of the more popular ones include resolving any errors that may be on your report, keeping a low balance on your cards, and taking care of any default accounts. Doing these things in combination with paying your secured card on time each month should help you to improve your credit up until the point that you can get approved by most lenders, so get out there and get to work.
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