About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.
You have went through all of the steps to get rid of those burdening debts you could no longer afford and now a lot of your credit history is wiped clean. However, because you have a bankruptcy listed on your credit report, establishing new credit can be somewhat of a challenge. Check out these few simple rules to follow to help you through the process of rebuilding your credit after filing bankruptcy.
Start rebuilding your credit as soon as possible.
It is never too soon to start rebuilding your credit after the bankruptcy process is finalized. Many consumers assume that it is best to wait a while before trying to apply for credit anywhere. However, it is best to get started on rebuilding your credit as soon as possible. Changes on your credit will be reflected as soon as new accounts are opened, but it will take a while before your credit rating changes, so the sooner the better.
Avoid high-interest, high payment loans that can put you in a tight financial spot.
When you initially come out of bankruptcy, it can be difficult to find traditional loans and lenders willing to give you a chance at first. However, there will always be a few lenders who have high-interest loan products available specifically for those who have a bankruptcy in their recent credit history. Even though these loans can be a good way to help you reestablish your credit, you have to keep in mind that the payments can be substantially higher and the duration of the loan can be much longer than what you would normally expect. Because of this, it is easy to get yourself in a tight spot with payments that are far too big for your budget, which can land you in dire straights with your debt again.
Never disregard the benefits of secured credit cards.
For most consumers, they see a secured credit card offering and disregard it as nonsense. These secured credit cards require you to place a deposit that will stand as security for a certain limit of credit, a limit that is typically pretty near the same amount as your deposit. As someone who is rebuilding your credit after bankruptcy, these secured loans can actually be the perfect opportunity to get your credit score off to a new start.
Even though it can seem like a difficult feat to rebuild your credit after bankruptcy, by following these tips, you can see the process made much easier. Talk to yourbankruptcy attorney for more advice about rebuilding your credit after filing.
Share5 June 2017
