Giving Credit After Chapter 7
After filing for bankruptcy a few years later lenders make unsecured credit cards available, consumers should use moderation to avoid being tempted back into indebtedness. Just remembering the agony of overwhelming debt should be enough to bring an individual back to the realization that conservative consumerism is the best course to take. Consumer counseling agencies recommend establishing a good track record of timely, consistent payments over a minimum period of two years. They assert that lending institutions may extend loans to debtors who have filed Chapter 7, 11 and 13 bankruptcy petitions if financial reports indicate renewed faithfulness. Unsecured credit cards available after bankruptcy are a token of trust extended to responsible consumers.Another method of rebuilding credit after having to file for bankruptcy is to purchase a vehicle at a “buy here, pay here” used car lot. Most of them do not penalize consumers for bad debts and bankruptcies. No, it’s not a major auto dealership, and the interest rates may be higher, but individuals can use this type of financing to re-establish a sound car payment history. When filing bankruptcy, individuals should also ensure that current reports accurately reflect discharged accounts. Use an online service and obtain free reports and scores from the three major reporting bureaus and review them carefully. Contact them personally to ensure that any discrepancies, such as an outdated bankruptcy filing and settled accounts are properly recorded. Timely payments with unsecured cards made available after bankruptcy also contribute to rebuilding positive credit histories. Rebuilding credit after bankruptcy sometimes requires “piggy-backing” off of someone else’s good credit.
