After Banbkruptcy It’s Important To Re-establish Your Credit
After filing for bankruptcy, the recommendation for reestablishing credit is to establish credit with four creditors, including one or more secured credit cards. Stores and credit card companies will often allow people with bad credit histories to obtain credit from them, but the charge limits will be low, and the interest high. Another tip to improve the chances of loans after Bankruptcy is to ask providers of gas heating, auto insurance, water, and phone service if they will give a clean credit reference letter to a post-bankruptcy customer after twelve months of on-time payments. Even though one of the consequences of bankruptcy is that the bankruptcy stays on one’s credit record for ten years, these other positive events are certainly going to be helpful to a person’s overall credit rating.If all of this seems tedious and time-consuming, it is. People should know ahead of time that these difficulties are the the downside of a bankruptcy filing. Another of the loans after bankruptcy that many people are looking for is a car loan. These are not so difficult to obtain. Again, high interest will be part of the deal. However, from a credit history standpoint, higher interest is much better than “high risk.” Application for an auto loan post-filing bankruptcy can even be done online. The rules are simple: Applicant must be 18 years old; must make $1,400/$2,000 joint income per month; must have a valid drivers’ license; and must have or be able to obtain car insurance. One thing doesn’t change about buying a car, whether it’s before or after bankruptcy, and that is the importance of checking with different dealers to find the best possible deal on a vehicle.
