Credit After Bankruptcy - Use it Wisely

Saturday, November 16, 2019 - 21:55

Rebuilding Credit

When you are discharged from bankruptcy, you need to manage your finances carefully, so you do not incur too much debt again. It is generally a good idea to wait before you start applying for more credit so you can get used to having the available income to cover unexpected expenses. But it's also important to start building your credit as soon as possible.

When you finish your bankruptcy, and all of your qualifying debts are discharged, at some point in the future you might be looking to get credit for the purchase of property or a vehicle. Since bankruptcy stays on your credit report for ten years, you may find that you need a loan long before then.

Credit Offers
Avoid those that offer credit with advertisements such as “Bad Credit, No Credit, No Problem” as these rates will be extraordinarily high, making it almost impossible to keep up with the payments.

If you pay your bills on time and have no further negative issues on your credit report for a few years, you may be able to get reasonable rates on a loan. Creditors will take into account that you have learned to manage your debt better after the bankruptcy.

If you're thinknig about bankruptcy, your credit rating is something that you are most likely worried about. The important thing to remember is, if you file bankruptcy, it takes several years to build your credit again. But at least you're on the road to building it. If you continue with your debt cycle, your credit will just continue to decline. 

Latest Posts

Difference Between Secured and Unsecured Debt

Most consumer debt can be classified into two types, secured and unsecured. This can be useful to know what type your debt is when you are considering bankruptcy. 

November 21, 2019